LuxUrban Hotels Inc. announced a significant move on November 20, 2024. The company, trading under Nasdaq: LUXH, will implement a reverse stock split at a ratio of 70 for 1. This decision aims to improve the trading profile of the stock and ensure compliance with Nasdaq regulations.

Currently, LuxUrban has around 151.85 million shares outstanding. After the reverse split, this number will reduce drastically to approximately 2.17 million shares. The intention behind this move is to elevate the stock price, making it more appealing to investors and meeting Nasdaq’s compliance criteria. Recently, the stock price stood at $1.52, reflecting a 22.73% decline.

This company has seen considerable stock price fluctuations, and the reverse split is anticipated to stabilize these changes. The firm’s market capitalization is approximately $209.69 million, with a trading volume of 631,109 shares reported on the NASDAQ exchange.

In a related development, stockholders voted to waive the 19.99% share limitation proposal. This waiver offers LuxUrban greater flexibility in issuing new shares, crucial for raising capital and expanding the company. Both the reverse stock split and the share limitation waiver represent critical strategies for LuxUrban to strengthen its market position.