LuxUrban Hotels Inc. (NASDAQ:LUXH), a real estate company based in Miami, Florida, has disclosed the issuance of additional common stock as a form of interest payment to certain investors.
On Monday, the company reported that it had issued 335,579 shares of common stock to investors who participated in a debt placement in August 2024. These shares, known as "Payment Shares," were issued at a price of $0.542 per share to satisfy the monthly interest due on January 5, 2025.
The pricing of the Payment Shares was determined to be $0.01 higher than the lower of two values: the closing market price of LuxUrban's common stock on December 16, 2024, or the closing market price on the trading day immediately before the interest payment date. This approach was outlined in a debt modification agreement dated December 16, 2024.
This transaction is part of the company's ongoing financial strategy, and the details were outlined in a recent 8-K filing with the Securities and Exchange Commission (SEC). LuxUrban Hotels Inc., initially named Corphousing Group Inc., operates under the real estate industry classification and is incorporated in Delaware.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.