LuxUrban Hotels Inc. (Nasdaq: LUXH) to undergo a reverse stock split at a ratio of 70 for 1 to improve its stock’s trading profile and ensure Nasdaq compliance.
The reverse stock split will reduce the total number of shares from approximately 151.85 million to about 2.17 million, aiming to increase the stock price and attract investors.
Stockholders approved a proposal to waive the 19.99% share limitation, providing LuxUrban with greater flexibility for issuing shares and supporting growth.
On November 20, 2024, LuxUrban Hotels Inc. (Nasdaq: LUXH), based in Miami, Florida, will undergo a reverse stock split at a ratio of 70 for 1. This strategic move is aimed at enhancing the company’s position within the Nasdaq Capital Markets and improving its stock’s trading profile.
The reverse stock split, approved by stockholders on November 12, 2024, will significantly reduce the number of shares from approximately 151.85 million to about 2.17 million. This reduction is intended to increase the stock price, making it more attractive to investors and ensuring compliance with Nasdaq’s listing requirements. The stock is currently priced at $1.52, having decreased by 22.73% recently.
LuxUrban’s stock has experienced significant fluctuations. The reverse split is expected to stabilize these fluctuations and better position the company for future growth and expansion. The market capitalization of LUXH stands at approximately $209.69 million, with a trading volume of 631,109 shares on the NASDAQ exchange.
Additionally, stockholders have approved a proposal to waive the 19.99% share limitation, supporting LuxUrban’s strategic objectives. This waiver allows the company more flexibility in issuing shares, which can be crucial for raising capital and pursuing growth opportunities. The reverse stock split and share limitation waiver are key components of LuxUrban’s plan to strengthen its market presence.
