LuxUrban Hotels Enters into a Securities Purchase Agreement for the Issuance of Senior Secured Original Issue Discount Notes and Common Stock Purchase Warrants

LuxUrban Hotels Inc. (NASDAQ:LUXH) recently disclosed in a Form 8-K filing submitted to the Securities and Exchange Commission that it had entered into a Securities Purchase Agreement (SPA) on January 21, 2025. This agreement outlines the issuance and sale of up to $10,000,000 in aggregate principal amount of Senior Secured Original Issue Discount Notes (January 2025 Notes) and common stock purchase warrants (January 2025 Warrants). The January 2025 Notes carry an interest rate of twelve percent (12%) per annum and will constitute senior secured obligations of LuxUrban Hotels Inc.

The Schedule 13D filing denotes that the transactions outlined in the Transaction Documents executed concerning the January 2025 SPA were duly consented to and approved by the holders of the August 2024 Notes, pursuant to the Second Modification Agreement dated January 16, 2025. The incorporation of the January 2025 Notes and Warrants will occur at a closing scheduled for a mutually agreed-upon time and location, subject to the fulfillment of all conditions. LuxUrban issued a January 2025 Note in the amount of $375,000 and a January 2025 Warrant for the acquisition of up to 1,029,866 shares of the company’s common stock at specific prices.

The filing also addresses the creation of a direct financial obligation or an off-balance sheet arrangement by the company, citing previous offerings of senior secured convertible promissory notes and common stock purchase warrants under the 2024 Debt Placement through a securities purchase agreement. LuxUrban Hotels Inc. had extended the 2024 Debt Placement through November 6, 2024.

This recent development signifies LuxUrban Hotels Inc.’s strategic financial move to increase its capital through the issuance of these new notes and warrants. This move aligns with the company’s objective of fortifying its financial position and supporting its corporate initiatives. For a comprehensive understanding of the terms and conditions of the SPA and related agreements, interested parties are advised to refer directly to the formal regulatory filings.

LuxUrban Hotels Inc. is an emerging growth entity as recognized in Rule 405 of the Securities Act of 1933, with a commitment to furthering its financial strategy and expanding its market presence while prioritizing sustainable growth and operational efficiency.

The original filing is publicly available for review on the Securities and Exchange Commission’s database for a complete and detailed overview of the transactions entered into by LuxUrban Hotels Inc.

The article provides an informative and concise overview of LuxUrban Hotels’ recent financial agreements and positions while maintaining an objective and informational tone for readers.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read LuxUrban Hotels’s 8K filing here.

About LuxUrban Hotels

LuxUrban Hotels Inc utilizes an asset light business model to lease entire hotels on a long-term basis and rent out hotel rooms in the properties it leases. It manages a portfolio of hotel rooms in New York, Washington DC, Miami Beach, New Orleans, and Los Angeles. The company was formerly known as CorpHousing Group Inc and changed its name to LuxUrban Hotels Inc in November 2022.