LuxUrban Hotels announces 1-for-70 reverse stock split

LuxUrban Hotels (LUXH) announced that it will effectuate a one-for-seventy reverse stock split of its common stock. This reverse stock split was approved by stockholders at the special meeting held on November 12, and will be effective at the opening of trading on November 20. The reverse stock split is part of LuxUrban Hotels’ strategy to strengthen its position within the Nasdaq Capital Markets, improve the stock’s trading profile, and position the company for future growth and expansion opportunities. Following the reverse split, the number of shares of common stock issued and outstanding will be reduced from approximately 151.85M to approximately 2.17M shares. In addition, stockholders approved a proposal to waive the 19.99% share limitation under Nasdaq Rule 5635(d), allowing the company to issue additional shares of common stock upon the conversion of certain convertible promissory notes and the exercise of outstanding warrants. This approval enables LuxUrban to maintain its compliance with Nasdaq listing standards while maximizing the flexibility of its financing arrangements. The trading symbol for LuxUrban’s common stock on the Nasdaq Capital Market will remain “LUXH.” Stockholders who would own a fraction of a share as a result of the reverse stock split will instead receive cash in lieu of a fractional share.