Ashford Hospitality Tr Inc Stock Price, News & Analysis

Ashford Hospitality Trust (AHT) announced the results of its Exchange Offers for its Preferred Stock, which expired on November 20, 2020. Approximately 30% of the shares were tendered, with Series F Preferred Stock seeing the highest participation at 37%. A total of approximately 38,388,760 new common shares will be issued as a result, expected to close on November 25, 2020. The Company has filed necessary documents with the SEC, including a registration statement and proxy statement, to facilitate these exchanges.

Ashford Hospitality Trust (AHT) announced compliance with NYSE listing standards following a letter from the NYSE on November 19, 2020. Initially notified on October 1, 2020, about non-compliance concerning market capitalization and stockholders' equity, the NYSE clarified that these criteria do not apply to real estate investment trusts (REITs). The NYSE plans to remove the .BC indicator from AHT's stock symbol. The company, focusing on upper upscale, full-service hotels, has also launched an app for hospitality REIT investors.

Cygnus Capital, one of the largest shareholders of Ashford Hospitality Trust (AHT), owning about 9.4% of common stock, expressed concerns over AHT's recent exchange offers. Cygnus believes these offers are a distraction and calls for immediate termination. The firm urges the Board to enhance transparency on AHT's liquidity, consider strategic alternatives like fee reductions and potential sales, and to reduce related party transactions. Cygnus asserts that AHT could recover $1.6 billion in equity value if decisive actions are taken by the Board.

Ashford Hospitality Trust (NYSE: AHT) announced the extension of its exchange offer for preferred stock until November 20, 2020, allowing holders to exchange shares for newly issued common stock. The exchange will now only offer stock consideration, removing the cash option. The financing condition has also been eliminated, allowing the exchange to proceed without raising at least $30 million. As of October 23, 2020, over 2 million shares of preferred stock had been tendered. The company will not seek further approval for a charter amendment related to this exchange.

Cygnus Capital, a major stockholder of Ashford Hospitality Trust (AHT), owning 9.4% of shares, urges the company to end its dilutive exchange offers for preferred stock. The postponement of a stockholder meeting indicates lack of support for the proposed charter amendment aimed at converting preferred stock. Cygnus Capital accuses AHT management of prioritizing insiders' interests over stockholders and calls for transparency and alternative restructuring methods. They recommend increasing the cash pool for exchanges, reducing preferred stock conversion, and exploring options like bridge loans and rights offerings.

Cygnus Capital, owning about 8.3% of Ashford Hospitality Trust (AHT), has urged AHT to terminate its dilutive exchange offers for preferred stock. The calls come after an insufficient number of votes were cast to amend the corporate charter at a recent stockholder meeting. Cygnus claims AHT is not acting in the best interests of stockholders, advocating instead for alternative strategies that avoid dilution. They urge stockholders to vote against the proposed charter amendment, highlighting the company's sufficient cash reserves and potential for recovery.

Ashford Hospitality Trust (NYSE: AHT) announced that shareholders approved the issuance of up to 126,048,813 shares of common stock during a Special Meeting held on October 6, 2020. Approximately 67.8% of votes were in favor. The meeting was partially adjourned to allow further voting on a Charter Amendment Proposal, requiring a two-thirds majority for approval. This will reconvene on October 30, 2020. Ashford Trust's Board encourages all stockholders to vote 'FOR' the amendment to facilitate the exchange offer and protect their investment.

Cygnus Capital, a major shareholder of Ashford Hospitality Trust (AHT), owning approximately 8.3% of its outstanding stock, has responded to AHT's amendments concerning highly dilutive exchange offers of preferred stock into common equity. The amendments could lead to a dilution of existing common stock by around 94%. Cygnus warns that the NYSE Proposal, requiring stockholder approval for issuing up to 126 million shares, remains critical to avoiding significant dilution. They urge AHT stockholders to vote against all special meeting proposals to protect their investments.

Ashford Hospitality Trust (NYSE: AHT) has extended the expiration date for its exchange offer to October 30, 2020, allowing more time to raise at least $30 million for cash consideration. The company waived several conditions for the exchange, including the need for a two-thirds majority of preferred stockholders to participate. Despite these waivers, Ashford still seeks consent from preferred stockholders for proposed amendments to convert preferred shares into common shares. As of October 1, 2020, over 2 million shares of various preferred stock series have been tendered.