LuxUrban Hotels Secures Revenue Share Payment Obligations From Its Pre-IPO Investors

(RTTNews) - LuxUrban Hotels Inc. (LUXH), a company that leases and rents hotels, on Monday, announced that it has entered into an agreement with its pre-IPO investors to eliminate an estimated $87.5 million in Revenue Share payments in exchange for a one-time issuance of 6,740,000 shares of the common stock of the company.

The company will issue the agreement shares to Greenle Partners LLC in exchange for the termination of all rights of Greenle to receive any future Revenue Share payments.

The agreement comes with a blocker provision that restricts Greenle's beneficial ownership to 9.9 percent of the Company's outstanding common stock.

On Friday, shares of Luxurban Hotels closed at $3.5 up by 16.86% or $0.50 on the Nasdaq.