LuxUrban Hotels announces agreement in principle to issue up to $5M senior notes

LuxUrban Hotels has reached an agreement in principle with certain accredited investors to sell up to $5.0 million aggregate principal amount of new senior notes due 2027 in a private offering exempt from registration under the Securities Act of 1933, as amended. The offering of the Notes is subject to the execution of definitive agreements. Subject to certain conditions, the Notes will be convertible into a newly created series of preferred stock. The Company estimates that the net proceeds from the Notes offering will be approximately $4.425 million after deducting the initial purchasers’ discount and other transaction-related costs. The Company intends to use the proceeds from the offering for working capital and other general corporate purposes.