DALLAS - Ashford (NYSE:AINC) Inc. (NYSE American: AINC), a company previously listed on the NYSE American LLC stock exchange, has finalized a reverse and subsequent forward stock split as part of its plan to delist and deregister its common stock according to the Securities Exchange Act of 1934.
The reverse stock split, at a ratio of 1-for-10,000, and the forward stock split, at a ratio of 10,000-for-1, took place on Monday, July 29, 2024, resulting in a post-transaction total of 2,066,860 shares outstanding.
The NYSE American has submitted a Form 25 with the Securities and Exchange Commission (SEC) to formalize the removal of Ashford's common stock from its listings and to deregister the stock under Section 12(b) of the Exchange Act.
Consequently, Ashford's common stock will no longer trade on the NYSE American. The company has expressed its intention to terminate its common stock registration under the Exchange Act and to stop its reporting obligations as a public company.
The definitive proxy statement on Schedule 14A, which provides further details about the company's deregistration and delisting process, was filed with the SEC on June 21, 2024.
Ashford Inc .'s decision to delist comes amid a broader context where companies sometimes choose to go private for various strategic reasons, including cost reduction associated with public reporting and increased managerial flexibility. However, the press release statement did not specify the reasons behind Ashford's decision.
The delisting and deregistration process marks a significant change in Ashford Inc.'s stock market presence, as the company transitions away from the public securities markets. This information is based on a press release statement from Ashford Inc.
In other recent news, Ashford Inc. has confirmed the departure of its Senior Managing Director, J. Robison Hays III. The departure, effective from June 30, 2024, comes after Hays previously signaled his intention to resign.
Following his departure, Hays has entered into a consulting agreement with Ashford Inc. and its subsidiary, Ashford Hospitality (NYSE:AHT) Advisors LLC, to offer his services for a period of 36 months. As part of this agreement, Hays will receive a total sum of $1,909,167, along with health, life, and long-term disability insurance coverage.
In addition to this, the agreement stipulates that Hays's consulting period will be considered as continuous employment for determining his vested interests in any equity or incentive plans of Ashford Inc. or Ashford Trust. Hays remains bound by the restrictive covenants from his previous employment agreement, with modifications to non-competition and non-solicitation obligations. These recent developments are based on the latest SEC filing by Ashford Inc.
InvestingPro Insights
As Ashford Inc. (NYSE American: AINC) navigates its transition away from the public market, recent data and analysis from InvestingPro provide a glimpse into the financial performance and market trends surrounding the company. Despite the delisting, the company's stock has shown a large price uptick over the last six months, with a 76.24% total return, signaling a remarkable short-term recovery. This aligns with an InvestingPro Tip indicating that analysts predict Ashford will be profitable this year.
From a financial perspective, Ashford reported revenue growth of 10.1% over the last twelve months as of Q1 2024, with a quarterly revenue growth of 17.28% in Q1 2024. This suggests a positive trajectory in the company's operations, even as it steps away from the public eye. The company's gross profit margin stood at a solid 35.78% during the same period, yet it's important to note that Ashford has not been profitable over the last twelve months, with basic and diluted EPS from continuing operations at -$13.06 and -$13.73 respectively.
InvestingPro also highlights that the stock generally trades with low price volatility, which may provide some reassurance to current investors amidst the structural changes. However, it's worth mentioning that Ashford does not pay a dividend to shareholders, which might impact investor decisions, especially for those seeking regular income streams from their investments.
For investors seeking more detailed analysis and additional InvestingPro Tips, there are 9 more tips available, which can be accessed on the InvestingPro platform. Readers looking to delve deeper into Ashford Inc.'s financial metrics and market performance can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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