AINC - Ashford BoD Approves Plan to terminate Registration of Its Common Stock

2024-04-02 08:49:31 ET

DENVER, Colo., Apr 02, 2024 ( 247marketnews.com )- Ashford Inc. (NYSEAMERICAN: AINC ) stated that a Special Committee of independent and disinterested directors recommended 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.

Its Board of Directors approved the recommendation and it’s expected that this plan would be initiated in the summer of 2024, subject to shareholder approval.

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, representing a 125.2% premium above the common stock’s closing price on April 1, 2024 and is supported by a fairness opinion provided by Oppenheimer and Co. Inc.

Stockholders who own 10,000 or more shares of AINC 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. The number of shares they would own following the Proposed Transaction would be unchanged, as immediately after the reverse stock split, a forward split of 10,000-for-1 would be applied to the continuing stockholders, negating any effects to the number of shares held by them.

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