Ashford Hospitality Tr Inc Stock Price, News & Analysis

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.

Cygnus Capital, owning 8.3% of Ashford Hospitality Trust (AHT), has noted AHT's strides in managing debt amid a recovering U.S. hospitality sector. AHT has achieved forbearance agreements for 61 properties, representing 69% of its mortgage debt, totaling $1.2 billion. Despite signs of recovery, Cygnus Capital criticizes AHT management for self-dealing and excessive fees. With a special meeting on October 6, Cygnus urges shareholders to vote against dilutive exchange proposals that could result in a 94% dilution for common stockholders. Cygnus sees potential value in AHT's assets if managed properly.

Ashford Hospitality Trust (AHT) announced it received a non-compliance notice from the NYSE due to its average market capitalization and stockholders' equity falling below $50 million. The company has 10 business days to confirm receipt and 45 days to submit a compliance plan. If accepted, AHT can continue trading during an 18-month Cure Period. The notice does not impact current operations or financial obligations but may lead to delisting if compliance isn't achieved. AHT stock will trade under the symbol AHT with an added designation of '.BC'.

Ashford Hospitality Trust (AHT) filed a presentation with the SEC advocating for shareholders to support two proposals at the upcoming Special Meeting on October 6. The proposals are crucial for completing Exchange Offers intended to bolster the company's capital structure amid the COVID-19 crisis, which has severely impacted the hotel industry. The company faces substantial financial challenges and emphasizes the need for shareholder support to avoid jeopardizing common share value and potentially facing bankruptcy. The presentation also counters claims made by Cygnus Capital regarding the company's operations and recovery outlook.

Cygnus Capital, Inc., holding 7.8% of Ashford Hospitality Trust (AHT), urges stockholders to reject all proposals at AHT's special meeting on October 6, 2020. They criticize AHT's plans for significant common stockholder dilution via exchange offers, claiming these benefit AHT's management and associated company, Ashford, Inc. (AINC). Cygnus highlights conflicts of interest, excessive fees to AINC amid cash strain on AHT, and suggests an independent review of AHT's financial strategy. They maintain that AHT has time to recover from COVID-19 impacts and should prioritize shareholder rights.

Cygnus Capital, holding approximately 7.8% of Ashford Hospitality Trust (AHT), has urged stockholders to vote AGAINST proposals for dilutive exchange offers of preferred stock into common stock at the upcoming special meeting on October 6, 2020. The proposed exchanges could dilute existing common stockholders by around 94%. Cygnus argues that the timing is premature given the improving performance of the hospitality industry, and contends there are less dilutive alternatives available. The firm believes current cash levels are sufficient to address liquidity needs.

Ashford Hospitality Trust (AHT) has launched exchange offers for its Series D, F, G, H, and I Cumulative Preferred Stock, providing a total of 126,048,813 shares of common stock and $30 million in cash as consideration. This initiative aims to enhance the company's capital structure amid the ongoing impacts of COVID-19. The company has not paid dividends on any series of preferred stock for Q2 2020 and does not anticipate paying in the near future. The exchange offers will expire on October 9, 2020, subject to certain conditions.