Ashford Inc. Initiates Stock Delisting and Reverse Split Plan

Ashford Inc. is delisting its common stock from the NYSE American, implementing a reverse and forward stock split, and expects to save $2.5 million annually by ending public company reporting requirements.

July 29, 2024

Ashford Inc. (NYSE American: AINC) has begun its planned process to delist its common stock from the New York Stock Exchange American.

Shareholders recently approved a 1-for-10,000 reverse stock split of Ashford's common stock, followed immediately by a 10,000-for-1 forward stock split. The company will also waive the prohibition on Rule 13e-3 transactions in its Investor Rights Agreement. The last trading day for Ashford's common stock on the NYSE will be July 26, 2024. The reverse and forward stock splits will occur on July 29 at 5:01 p.m. ET and 5:02 p.m. ET, respectively.

Shareholders with fewer than 10,000 shares before the reverse stock split will receive $5.00 per share in cash and will no longer hold any shares in the company. To qualify for this payment, shareholders must own fewer than 10,000 shares immediately before the reverse stock split. Those who own 10,000 or more shares will not receive cash for fractional shares resulting from the reverse split but will retain their shares post-forward stock split.

Ashford's delisting and deregistration aim to cut costs associated with being a public company, expected to save approximately $2.5 million annually, and focus on long-term growth and value enhancement. Following deregistration, Ashford will no longer file reports with the SEC or issue annual reports and proxy statements to shareholders.

Ashford continues to sponsor two non-listed preferred stock offerings, raising over $100 million in investor equity.