Ashford Board Approves Plan To Terminate Registration Of Its Common Stock

(RTTNews) - Ashford Inc. (AINC)said that a Special Committee of independent and disinterested directors has recommended, and its Board of Directors has approved, a plan to terminate the registration of the company's common stock under the federal securities laws following the completion of a proposed reverse stock split transaction immediately followed by a forward stock split transaction and to delist its shares of common stock from trading on the NYSE American LLC.

It is expected that the plan would be initiated in the summer of 2024.

Ashford noted that it is taking the steps to avoid the substantial cost and expense of being a public reporting company and to focus the Company's resources on enhancing long-term stockholder value. The company anticipates savings exceeding $2.50 million on an annual basis as a result of the proposed transaction.

The proposed reverse stock split is a 1-for-10,000 split, in which holders of less than 10,000 shares of the Company's common stock in any one account immediately prior to the reverse stock split would be cashed out at a price of $5.00 per each pre reverse stock split share. Such price represents a 125.2% premium above the common stock's closing price on April 1, 2024.

Stockholders owning 10,000 or more shares of the Company's common stock in any one account immediately prior to the reverse stock split would not have any shares cashed out and would remain stockholders in Ashford, which would no longer be encumbered by the expenses and distraction of being a public reporting company.

Ashford estimates that about 1.1 million shares--representing about 31% of the shares of common stock currently outstanding-- would be cashed out in the Proposed Transaction and the aggregate cost to the company of the Proposed Transaction would be about $5.5 million, plus transaction expenses, which are estimated to be about $6.7 million. The company intends to fund such costs using cash-on-hand.