UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

Amendment No. 6 to

SCHEDULE 13D

 

Under the Securities Exchange Act of 1934

(Amendment No. 6)*

 

LuxUrban Hotels Inc.

(Name of Issuer)

 

Common Stock, par value $0.00001 per share

(Title of Class of Securities)

 

21985R 105

(CUSIP Number)

 

Robert Arigo

Chief Executive Officer

2125 Biscayne Blvd. Suite 253

Miami, Florida 33137

(833)-723-7368

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

 

June 26, 2024

(Date of Event which Requires Filing of This Statement)

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. ☐

 

Note. Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.

 

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

 

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 

 

 

 

 

1.

NAMES OF REPORTING PERSONS

 

Brian Ferdinand

2.

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (see instructions)

 

(a) ☐     (b) ☐

3.

SEC USE ONLY

 

 

4.

SOURCE OF FUNDS (see instructions)

 

PF

5.

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

6.

CITIZENSHIP OR PLACE OF ORGANIZATION

 

United States of America

NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
7.

SOLE VOTING POWER

 

7,283,334

8.

SHARED VOTING POWER

 

0

9.

SOLE DISPOSITIVE POWER

 

7,283,334

10.

SHARED DISPOSITIVE POWER

 

0

11.

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

7,283,334

12.

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (see instructions)

 

13.

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

9.9% (1)

14.

TYPE OF REPORTING PERSON (see instructions)

 

IN

 

(1) Based on 73,199,338 shares of the Issuer’s common stock outstanding as of the date of this Amendment to Schedule 13-D. Represents (a) 2,354,917 shares of common stock owned by THA Holdings LLC (“THA Holdings”), an entity controlled by Mr. Ferdinand, formerly the Issuer’s Chairman and Chief Executive Officer, and since April 22, 2024, a consultant to the Issuer, (b) 250,000 shares of common stock issuable upon exercise of certain warrants owned by THA Family II Limited Liability Company (“THA Family II”), an entity owned by Mr. Ferdinand’s spouse and controlled by Mr. Ferdinand as the managing member, (c) 3,060,170 shares of common stock owned by Mr. Ferdinand, (f) 110,000 shares of common stock issuable upon exercise of certain warrants owned by THA Family II and (d) shares issuable upon exercise of 1,508,247 warrants (the “THA Warrants”) held by THA Holdings LLC that are not exercisable until the Charter Amendment and Plan Amendment (as defined and described in the preliminary information statement on Schedule 14C filed with the SEC on May 29, 2024) is effective under the Exchange Act and the Delaware General Corporation Law. See Items 4 herein for discussion on ownership blocker prescribed by the warrants held by THA Holdings LLC. Does not include 15,991,753 shares issuable upon exercise of additional THA Warrants as such warrants contain unwaivable provisions prohibiting the exercise thereof if such exercise would result in the Reporting Person and affiliates beneficially owning in excess of 9.99% of the number of shares of the Company common stock outstanding immediately after giving effect to the issuance of such shares.

 

1

 

 

1.

NAMES OF REPORTING PERSONS

 

THA Holdings LLC

2.

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (see instructions)

 

(a) ☐     (b) ☐

3.

SEC USE ONLY

 

 

4.

SOURCE OF FUNDS (see instructions)

 

PF

5.

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

6.

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
7.

SOLE VOTING POWER

 

3,863,834

8.

SHARED VOTING POWER

 

0

9.

SOLE DISPOSITIVE POWER

 

3,863,834

10.

SHARED DISPOSITIVE POWER

 

0

11.

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

3,863,834

12.

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (see instructions)

 

13.

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

5.3% (1)

14.

TYPE OF REPORTING PERSON (see instructions)

 

OO

 

(1) Based on 73,199,338 shares of the Issuer’s common stock outstanding as of the date of this Amendment to Schedule 13-D. This amount represents the (a) 2,354,917 shares of the Issuer’s common stock beneficially owned by THA Holdings LLC and (b) shares issuable upon exercise of 1,508,247 warrants (the “THA Warrants”) held by THA Holdings LLC that are not exercisable until the Charter Amendment and Plan Amendment (as defined and described in the preliminary information statement on Schedule 14C filed with the SEC on May 29, 2024) is effective under the Exchange Act and the Delaware General Corporation Law. See Items 4 herein for discussion on ownership blocker prescribed by the warrants held by THA Holdings LLC. Does not include 15,991,753 shares issuable upon exercise of additional THA Warrants as such warrants contain unwaivable provisions prohibiting the exercise thereof if such exercise would result in the Reporting Person and affiliates beneficially owning in excess of 9.99% of the number of shares of the Company common stock outstanding immediately after giving effect to the issuance of such shares. Brian Ferdinand is the managing member of THA Holdings LLC and, as such, may be deemed to beneficially own such shares. Mr. Ferdinand has sole voting and dispositive power over such shares.

 

2

 

 

1.

NAMES OF REPORTING PERSONS

 

THA Family II Limited Liability Company

2.

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (see instructions)

 

(a) ☐     (b) ☐

3.

SEC USE ONLY

 

 

4.

SOURCE OF FUNDS (see instructions)

 

PF

5.

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

6.

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
7.

SOLE VOTING POWER

 

360,000

8.

SHARED VOTING POWER

 

0

9.

SOLE DISPOSITIVE POWER

 

360,000

10.

SHARED DISPOSITIVE POWER

 

0

11.

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

360,000

12.

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (see instructions)

 

13.

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

0.4% (1)

14.

TYPE OF REPORTING PERSON (see instructions)

 

OO

 

(1) Based on 73,199,338 shares of the Issuer’s common stock outstanding as of the date of this Amendment to Schedule 13-D. This amount represents 360,000 shares that are issuable upon exercise of warrants owed by THA Family II. Brian Ferdinand is the managing member of THA Family II and, as such, may be deemed to beneficially own such shares. Mr. Ferdinand has sole voting and dispositive power over such shares.

 

3

 

 

1.

NAMES OF REPORTING PERSONS

 

SuperLuxMia LLC

2.

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (see instructions)

 

(a) ☐     (b) ☐

3.

SEC USE ONLY

 

 

4.

SOURCE OF FUNDS (see instructions)

 

PF

5.

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)

 

6.

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
7.

SOLE VOTING POWER

 

0

8.

SHARED VOTING POWER

 

0

9.

SOLE DISPOSITIVE POWER

 

0

10.

SHARED DISPOSITIVE POWER

 

0

11.

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

0

12.

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (see instructions)

 

13.

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

N/A (1)

14.

TYPE OF REPORTING PERSON (see instructions)

 

OO

 

4

 

 

AMENDMENT NO. 6 TO SCHEDULE 13D

 

This Amendment No. 6 to Schedule 13D is filed on behalf of Brian Ferdinand, an individual, THA Holdings LLC (“THA”), THA Family II Limited Liability Company (“THA Family II”) and SuperLuxMia LLC (“SuperLuxMia”), with respect to the common stock, par value $0.00001 per share (“Common Stock”), of LuxUrban Hotels Inc. (the “Issuer”). On April 22, 2024, Mr. Ferdinand resigned as the Chairman of the Board of Directors and Chief Executive Officer of the Issuer and currently operates as a consultant to the Issuer. On June 26, 2024, Mr. Ferdinand resigned from the board of directors of the Company. THA is controlled by Mr. Ferdinand. THA Family II and SuperLuxMia are entities wholly owned by Mr. Ferdinand’s spouse and controlled by Mr. Ferdinand as their managing member. Mr. Ferdinand has sole voting and dispositive power over such shares.

 

Item 1. Security and Issuer

 

  Security: Common Stock

 

  Issuer:

LuxUrban Hotels Inc.

2125 Biscayne Blvd. Suite 253

Miami, Florida 33137

 

Item 2. Identity and Background

 

(a) The reporting person is Brian Ferdinand both, in his direct, individual capacity, and indirectly via Mr. Ferdinand’s ownership and control of THA, THA Family II and SuperLuxMia.

 

(b) Each of Mr. Ferdinand’s, THA’s, THA Family II’s and SuperLuxMia’s business address is 2125 Biscayne Blvd. Suite 253 Miami, Florida 33137.

 

(c) As consultant to the Issuer, Mr. Ferdinand’s advises the Issuer on its long-term lease, asset-light business model to acquire and manage a growing portfolio of short-term rental properties in major metropolitan cities, including dislocated and underutilized hotels, under the Issuer’s consumer brand, LuxUrban™. Mr. Ferdinand has also served as Managing Member of THA and SuperLuxMia since their founding. THA Family II and SuperLuxMia are entities wholly owned by Mr. Ferdinand’s spouse and controlled by Mr. Ferdinand as their managing member. THA and THA Family II are family investment entities.

 

(d) Neither of Mr. Ferdinand, THA, THA Family II or SuperLuxMia has, during the last five years, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors).

 

(e) Neither THA, THA Family II nor SuperLuxMia has, during the last five years, been a party to civil proceeding of a judicial administrative body of competent jurisdiction and, as a result of such proceeding, was, or is subject to, a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, Federal or state securities laws or finding any violation with respect to such laws. Mr. Ferdinand entered into an Offer of Settlement with the Securities and Exchange Commission on April 22, 2020, in connection with allegations that he, as a board member of Liquid Holdings Group Inc., (a) reviewed a Form 10-Q and signed a Form 10-K for the fiscal year 2013 that failed to disclose material facts of Liquid’s reliance on a related party entity (a principal customer of Liquid and a company of which Mr. Ferdinand was an owner) and from which Liquid received material subscription fees, and (b) failed to file required Forms 4 and amendments to Schedule 13D to reflect material changes to his ownership in Liquid’s shares of common stock, causing Liquid to violate Section 13(a), 13(d)(2) and 16(a) of the Exchange Act and related rules thereof. Mr. Ferdinand consented, without admitting or denying any findings, to a cease and desist order from any alleged secondary violations of Section 17(a)(2) of the Securities Act and 13(a) of the Exchange Act, which are non-scienter provisions in which negligence is sufficient to establish liability for causing a primary violation; and Section 13(d)(2) and Section 16(a) of the Exchange Act, which are personal security reporting provisions under which strict liability is sufficient to establish a violation. As a result of the settlement, Mr. Ferdinand was also required to pay a fine of $115,000.

 

(f) Brian Ferdinand is a citizen of the United States. THA is a Delaware limited liability company. THA Family II is a Delaware limited liability company. SuperLuxMia is a Delaware limited liability company.

 

5

 

 

Item 3. Source and Amount of Funds or Other Consideration

 

The source of the funds used by Mr. Ferdinand and his entities and affiliates to acquire the Common Stock reported on in this Schedule 13D was personal funds. See also Item 4 of this Schedule 13D, which information is incorporated herein by reference.

 

Item 4. Purpose of the Transaction

 

On June 26, 2024, the Company entered into an Exchange Agreement (the “Exchange Agreement”) with Brian Ferdinand, consultant to and former CEO of and director of the Company, pursuant to which Mr. Ferdinand relinquished 11,933,639 shares of Common Stock that Mr. Ferdinand beneficially owned through THA, THA Family II, and SuperLuxMia, and Common Stock that Mr. Ferdinand directly owned, in exchange for a warrant to acquire 11,804,872 shares of Common Stock with an exercise price of $0.01 per share (“Exchange Agreement Warrant”). 10,000,000 Exchange Agreement Warrants were issued to THA, and the remaining 1,804,872 Exchange Agreement Warrants were issued to the LuxUrban Guarantee Trust, a trust formed in Nevada for the benefit of Mr. Ferdinand’s parents. Mr. Ferdinand has not affiliation with the trust and is not a beneficiary or trusee thereof. This Exchange Agreement Warrant shall be exercisable, in whole or in part, commencing the date that is the first day after the date the Charter Amendment and Plan Amendment (as defined and described in the preliminary information statement on Schedule 14C filed with the SEC on May 29, 2024) is effective under the Exchange Act and the Delaware General Corporation Law. The Exchange Agreement Warrants expire ending on the ten-year anniversary of the date such Exchange Agreement Warrant was issued. The exchange was completed on June 26, 2024, at which time the shares were deemed terminated. The Company shall not affect any exercise of these warrants, and THA Holdings LLC and other owners of such warrants shall not have the right to exercise any portion of such warrants to the extent that after giving effect to such issuance holder and its Affiliates would beneficially own in excess of the Beneficial Ownership Limitation. The “Beneficial Ownership Limitation” shall be 9.99% of the number of shares of the Company common stock outstanding immediately after giving effect to the issuance of shares of Company common stock issuable upon exercise of the warrants.

 

The Exchange Agreement Warrants issued to the LuxUrban Guarantee Trust pursuant to the Exchange Agreement, as well as those shares owned by the LuxUrban Guarantee Trust that were reported on prior amendments to this Schedule 13D, are not part of Mr. Ferdinand’s beneficial ownership as Mr. Ferdinand’s parents are the beneficiaries. Therefore, this Amendment No. 6 to Schedule 13D also serves to revise and remove the LuxUrban Guarantee Trust from this Schedule 13D.

 

Mr. Ferdinand currently acts as consultant to the Issuer and was previously the Issuer’s former Chairman of the Board and former Chief Executive Officer and, with his beneficial ownership of approximately 31.79% of the outstanding shares of Common Stock, has the power to influence the election of all of the directors of the Issuer and other matters that would require the vote of a majority of the outstanding shares of Common Stock of the Issuer. Mr. Ferdinand may later acquire additional securities of the Issuer. Brian Ferdinand intends to review his ownership of the Issuer on a continuing basis. Any actions Mr. Ferdinand might undertake with respect to the common stock may be made at any time and from time to time without prior notice and will be dependent upon his review of numerous factors, including, but not limited to: an ongoing evaluation of the Issuer’s business, financial condition, operations and prospects; price levels of the Issuer’s securities; general market, industry and economic conditions; the relative attractiveness of alternative business and investment opportunities; and other future developments relating to Brian Ferdinand.

 

Other than as described above, and except in accordance with his role as consultant the Issuer, Mr. Ferdinand does not currently have any plans or proposals that relate to, or would result in, any of the matters listed in Items 4(a)–(j) of Schedule 13D, although, depending on the factors discussed herein, he may change his purpose or formulate different plans or proposals with respect thereto at any time.

 

6

 

 

Item 5. Interest in Securities of the Issuer

 

  (a)

The aggregate number and percentage of Common Stock beneficially owned by Brian Ferdinand (on the basis of a total of 73,199,338 shares of Common Stock outstanding as of June 26, 2024) are as follows:

 

        Amount     Percentage  
a)   Amount beneficially owned:     7,283,334       9.95 %
b)   Number of shares to which the Reporting Person has:                
  i. Sole power to vote or to direct the vote:     7,283,334       9.95 %
  ii. Shared power to vote or to direct the vote:     0       0.0 %
  iii. Sole power to dispose or to direct the disposition of:     7,283,334       9.95 %
  iv. Shared power to dispose or to direct the disposition of:     0       0.0 %

 

  (c) Represents (a) 2,354,917 shares of common stock owned by THA Holdings LLC (“THA Holdings”), an entity controlled by Mr. Ferdinand, formerly the Issuer’s Chairman and Chief Executive Officer, and since April 22, 2024, a consultant to the Issuer, (b) 250,000 shares of common stock issuable upon exercise of certain warrants owned by THA Family II Limited Liability Company (“THA Family II”), an entity owned by Mr. Ferdinand’s spouse and controlled by Mr. Ferdinand as the managing member, (c) 3,060,170 shares of common stock owned by Mr. Ferdinand, (f) 110,000 shares of common stock issuable upon exercise of certain warrants owned by THA Family II and (d) shares issuable upon exercise of 1,508,247 warrants (the “THA Warrants”) held by THA Holdings LLC that are not exercisable until the Charter Amendment and Plan Amendment (as defined and described in the preliminary information statement on Schedule 14C filed with the SEC on May 29, 2024) is effective under the Exchange Act and the Delaware General Corporation Law. See Items 4 herein for discussion on ownership blocker prescribed by the warrants held by THA Holdings LLC. Does not include 15,991,753 shares issuable upon exercise of additional THA Warrants as such warrants contain unwaivable provisions prohibiting the exercise thereof if such exercise would result in the Reporting Person and affiliates beneficially owning in excess of 9.99% of the number of shares of the Company common stock outstanding immediately after giving effect to the issuance of such shares.

 

  (d) Not applicable.

 

  (e) Not applicable.

 

Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer

 

See Item 4 of this Amendment to Schedule 13D, which information is incorporated herein by reference.

 

Indemnification Agreement

 

Concurrently and in connection with the IPO, the Issuer and Mr. Ferdinand entered into an indemnification agreement (the “Indemnification Agreement”) pursuant to which the Issuer agreed to indemnify against any damages, liabilities, losses, taxes, fines, penalties, costs and expenses that may be sustained by Mr. Ferdinand in connection with any action he takes while a director, officer or as an agent on behalf of the Issuer. The above description of the Indemnification Agreement is qualified in its entirety by reference to the full text of such agreement, the form of which was filed by the Issuer as Exhibit 10.10 to the Form 8-K filed by the Issuer with the SEC on March 23, 2022 (and is incorporated by reference herein as Exhibit 10.1).

 

7

 

 

Item 7. Material to be Filed as Exhibits

 

Exhibit 10.1   Form of Director and Officer Indemnification Agreement by and between the Reporting Person and the Issuer (incorporated by reference to Exhibit 10.11 to the Registration Statement on Form S-1 (No. 333-262114) file with the SEC on January 31, 2022).
Exhibit 10.2   Exchange Agreement by and among the Company and Mr. Ferdinand, dated as of June 26, 2024.

 

8

 

 

Signatures

 

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

 

 

BRIAN FERDINAND (INDIVIDUALLY)

THA HOLDINGS LLC

  THA FAMILY II LIMITED LIABILITY COMPANY
SUPERLUXMIA LLC
     
Dated: June 28, 2024 By: /s/ Brian Ferdinand
    Brian Ferdinand, Individually, as Sole Manager of THA Holdings LLC and SuperLuxMia LLC, as Authorized Officer of THA Family II Limited Liability Company

 

9

 

Exhibit 10.2

 

Exchange Agreement

 

This Exchange Agreement (this “Agreement”), dated as of June 26, 2024, is made by and among LuxUrban Hotels Inc. (the “Company”), on the one hand, and THA Holdings LLC (the “THA”), THA Family II Limited Liability Company (“THA Family II”), SuperLuxMia LLC (“SuperLuxMia”), and Brian L. Ferdinand (“Ferdinand” and collectively with THA, THA Family II, and SuperLuxMia, the “Holder”), on the other hand.

 

WHEREAS, the Holder collectively owns, among other equity in the Company, an aggregate of 11,804,872 shares (the “Exchange Shares”) of the Company’s common stock, $0.00001 per share (the “Common Stock”); and

 

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended (the “Securities Act”), the Company desires to exchange with the Holder, and the Holder desires to exchange with the Company, the Exchange Shares held by such Holder for an aggregate of 11,804,872 common stock purchase warrants (the “Exchange Warrants”) in the form attached hereto as Exhibit A.

 

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and the Holder agree as follows:

 

1. Terms of the Exchange. The Company and Holder agree that the Holder will exchange the Exchange Shares and will relinquish any and all other rights it may have in and under the Exchange Shares for the Exchange Warrants and that this election to so exchange is irrevocable and that the Company is relying on same. The Exchange Shares shall be. surrendered by the entities on Exhibit B(1) hereto in the amounts indicated thereon and the Exchange Warrants issued to the entities set forth on Exhibit B(2) hereto in the amounts set forth next to the name of each such entity.

 

2. Closing. The Exchange Shares shall be deemed surrendered and terminated and the Exchange Warrants issued concurrently with the execution of this Agreement.

 

3. Instruction to Transfer Agent. The parties hereto shall jointly and promptly provide a copy of this Agreement to Continental Stock Transfer & Trust Company (“CST”) and the Holder and the Company’s Chief Financial Officer shall provide CST with written notice in the form of Exhibit C hereto (“CST Instructions”) to immediately terminate the Exchange Shares on its books and records.

 

4. Exchange Shares Delivered to CST by Brokerages. The Holder hereby represents to the Company that all of the Exchange Shares have been delivered by the Holder’s brokerages to CST and the Holder has confirmed in writing (with an e-mail sufficing) with CST that CST has received and is in possession of all such Exchange Shares for purposes of effecting the provisions of this Agreement.

 

5. Further Assurances. The Exchange shall be deemed consummated upon execution of this Agreement and the delivery of the Exchange warrants concurrently herewith and shall be irrevocable. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

 

 

 

6. Representations and Warranties of the Holder. The Holder represents and warrants as of the date hereof as follows:

 

a. Authorization; Enforcement; Ownership. The Holder has the requisite power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement by the Holder and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on the part of the Holder and no further action is required by the Holder. This Agreement has been (or upon delivery will have been) duly executed by the Holder and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Holder enforceable against the Holder in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law. The Holder is the record and beneficial holder of the Exchange Shares as no other person has any claim or right thereto and all such Exchange Shares are free and clear of any and all liens, mortgages, security interests and encumbrances and can be freely returned to CST for termination as provided herein.

 

b. Tax Advisors. The Holder has reviewed with its own tax advisors the U.S. federal, state, local and foreign tax consequences of the transactions contemplated by this Agreement. With respect to such matters, the Holder relied solely on such advisors and not on any statements or representations of the Company or any of its agents, written or oral. The Holder understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.

 

c. Information Regarding Holder. Holder is an “accredited investor,” as such term is defined in Rule 501 of Regulation D promulgated by the United States Securities and Exchange Commission (the “Commission”) under the Securities Act, is experienced in investments and business matters, has made investments of a speculative nature and has purchased securities of companies in private placements in the past and, with its representatives, has such knowledge and experience in financial, tax and other business matters as to enable the Holder to utilize the information made available by the Company to evaluate the merits and risks of and to make an informed investment decision with respect to the proposed purchase, which represents a speculative investment. Holder has the authority and is duly and legally qualified to purchase and own the Exchange Warrants and underlying Common Stock. Holder is able to bear the risk of such investment for an indefinite period and to afford a complete loss thereof.

 

d. Legend. The Holder understands that the Exchange Warrants (and any shares of Common Stock issued upon exercise thereof) will be issued pursuant to an exemption from registration or qualification under the Securities Act and applicable state securities laws, and except as set forth below, the securities shall bear any legend as required by the “blue sky” laws of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

 

THESE SECURITIES AND THE SECURITIES ISSUABLE UPON THEIR EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE TRANSFERRED UNLESS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, A “NO-ACTION” LETTER FROM THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION” OR THE “SEC”) WITH RESPECT TO SUCH TRANSFER, A TRANSFER MEETING THE REQUIREMENTS OF RULE 144 OF THE COMMISSION, OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY SUCH TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

 

2

 

 

e. Restricted Securities; Nasdaq. The Holder understands that: (i) the Exchange Warrants (and shares of Common Stock issuable upon exercise thereof) have not been and are not being registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) the Holder shall have delivered to the Company (if requested by the Company) an opinion of counsel to the Holder, in a form reasonably acceptable to the Company, to the effect that such securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) the Holder provides the Company with reasonable assurance that such securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the Securities Act (or a successor rule thereto) (collectively, “Rule 144”); and (ii) any sale of such securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of such securities under circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the SEC promulgated thereunder. The Holder understands that the Exchange Warrants contain a provisions that such warrants are amendable and modifiable as may be required to comply with any Nasdaq rules or requirements.

 

7. Representations and Warranties of the Company. The Company hereby makes the following representations and warranties to the Holder:

 

a. Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and each of the other agreements entered into by the parties hereto in connection with the transactions contemplated by this Agreement (collectively, the “Exchange Documents”) and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors of the Company or the Company’s stockholders in connection therewith, including, without limitation, the issuance of the Exchange Warrants have been duly authorized by the Company’s Board of Directors and no further filing, consent, or authorization is required by the Company, its Board of Directors or its stockholders. This Agreement has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

b. Organization and Qualification. Each of the Company and its subsidiaries (the “Subsidiaries”) are entities duly organized and validly existing and in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authorization to own their properties and to carry on their business as now being conducted and as presently proposed to be conducted. Each of the Company and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means any material adverse effect on (i) the business, properties, assets, liabilities, operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any Subsidiary, individually or taken as a whole, (ii) the transactions contemplated hereby or in any of the other Exchange Documents or (iii) the authority or ability of the Company to perform any of its obligations under any of the Exchange Documents. Other than its Subsidiaries, there is no Person (as defined below) in which the Company, directly or indirectly, owns capital stock or holds an equity or similar interest. “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and any governmental entity or any department or agency thereof.

 

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c. No Conflict. The execution, delivery and performance of the Exchange Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Securities will not (i) result in a violation of the Certificate of Incorporation (as defined below) or other organizational documents of the Company or any of its Subsidiaries, any capital stock of the Company or any of its Subsidiaries or Bylaws (as defined below) of the Company or any of its Subsidiaries, (ii) except as set forth in the SEC Documents, conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including foreign, federal and state securities laws and regulations and the rules and regulations of Nasdaq (the “Principal Market”) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected except, in the case of clause (ii) or (iii) above, to the extent such violations that could not reasonably be expected to have a Material Adverse Effect.

 

d. No Consents. Neither the Company nor any Subsidiary is required to obtain any consent from, authorization or order of, or make any filing or registration with, any court, governmental agency or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its respective obligations under or contemplated by the Exchange Documents, in each case, in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations which the Company or any Subsidiary is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date of this Agreement, and neither the Company nor any of its Subsidiaries is aware of any facts or circumstances which might prevent the Company or any of its Subsidiaries from obtaining or effecting any of the registration, application or filings contemplated by the Exchange Documents. The Company is not in violation of the requirements of the Principal Market and has no knowledge of any facts or circumstances which could reasonably lead to delisting or suspension of the Common Stock in the foreseeable future.

 

e. Securities Law Exemptions. Assuming the accuracy of the representations and warranties of the Holder contained herein, the issuance by the Company of the Exchange Warrants is exempt from registration under the Securities Act. The issuance of the Exchange Warrants is exempt from registration under the Securities Act pursuant to the exemption provided by Section 3(a)(9) thereof. The Company covenants and represents to the Holder that neither the Company nor any of its Subsidiaries has received, anticipates receiving, has any agreement to receive or has been given any promise to receive any consideration from the Holder or any other Person in connection with the transactions contemplated by the Exchange Documents.

 

f. Issuance of Exchange Warrants. The issuance of the Exchange Warrants is duly authorized and upon issuance in accordance with the terms of this Agreement shall be validly issued, fully paid and non-assessable and free from all taxes, liens, charges and other encumbrances with respect to the issue thereof. The issuance of shares of Common Stock upon exercise of the Exchange Warrants are duly authorized and, when issued and paid for in accordance with the Exchange Warrants, will be duly and validly issued, fully paid and non-assessable, free from all taxes, liens, charges and other encumbrances imposed by the Company other than restrictions on transfer provided for in such documents.

 

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g. Transfer Taxes. As of the date of this Agreement, all share transfer or other taxes (other than income or similar taxes) which are required to be paid in connection with the issuance of the Exchange warrants to be exchanged with the Holder hereunder will be, or will have been, fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied with.

 

8. Miscellaneous.

 

a. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns.

 

b. Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by and construed under the laws of the State of New York, without regard to the choice of law principles thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of New York, City of New York for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby, and hereby irrevocably waives any objection that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

c. Severability. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.

 

d. Counterparts/Execution. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains an electronic file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or electronic file signature page (as the case may be) were an original thereof.

 

e. Notices. Any notice or communication permitted or required hereunder shall be in writing and shall be deemed sufficiently given if hand-delivered or sent (i) postage prepaid by registered mail, return receipt requested, or (ii) by facsimile, to the respective parties as set forth below, or to such other address as either party may notify the other in writing.

 

If to the Company, to:

 

LuxUrban Hotels Inc.

2125 Key Biscayne Blvd

Miami, Florida

 

If to a Holder, to the address set forth on the signature page hereto.

 

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f. Expenses. The parties hereto shall pay their own costs and expenses in connection herewith.

 

g. Entire Agreement; Amendments. This Agreement (and the Exchange Warrants) constitutes the entire agreement between the parties with regard to the subject matter hereof and thereof, superseding all prior agreements or understandings, whether written or oral, between the parties. This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions hereof may be waived, only by a written instrument signed by all parties, or, in the case of a waiver, by the party waiving compliance. Except as expressly stated herein, no delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder preclude any other or future exercise of any other right, power or privilege hereunder.

 

h. Headings. The headings used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

 

[SIGNATURE PAGES FOLLOW]

 

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IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day and year first above written.

 

  LUXURBAN HOTELS INC.
     
  By: /s/ Michael James
    Michael James
    Chief Financial Officer
     
  THA HOLDINGS LLC
     
  By: /s/ Brian L. Ferdinand
    Brian L. Ferdinand
    Manager
     
  THA FAMILY II LIMITED LIABILITY COMPANY
     
  By: /s/ Brian L. Ferdinand
    Brian L. Ferdinand
    Manager
     
  SUPERLUXMIA LLC
     
  By: /s/ Brian L. Ferdinand
    Brian L. Ferdinand
    Manager
     
  /s/ Brian L. Ferdinand
  BRIAN L. FERDINAND
  Individually

 

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