IHT RECEIVES NOTICE FROM NYSE AMERICAN; IHT OPERATIONS
Phoenix, AZ, November 19, 2021 (GLOBE NEWSWIRE) – InnSuites Hospitality Trust (NYSE American: IHT) received a letter from NYSE American on November 15, 2021, informing the Trust that staff at the NYSE American Corporate Regulation Department had determined that the Trust was not in compliance with part 10 of section 1003 (a) (ii) and (iii) of the NYSE American Company Guide due to the Trust’s equity of less than $ 4.0 million and $ 6.0 million, respectively, and losses from continuing operations and / or net losses during its last five fiscal years ended January 31, 2021. The trust also does not qualify for an exemption in section 1003 (a) of the Company’s Guide to Shareholder Capital Requirements. The Trust suffered losses related to the Covid-19 pandemic over eighteen months as well as the recognition of a non-monetary depreciation charge for hotels.
The letter from the NYSE informed the Trust that in order to maintain its listing, it must submit a compliance plan by December 15, 2021, indicating how it intends to regain compliance with the continuous listing standards by June 15, 2023, in the maximum potential limits of 18- month plan period available. Elements of the compliance plan may include the sale of one or more of its assets (management believes that IHT hotels have a book value well below market value), the sale of additional Trust shares at market value. market, the sale of minority interests in specific hotel properties and / or the anticipated continuation of current upward operating trends in hotel gross operating profits, and / or the diversified investment in clean and efficient energy. ‘UniGen, gaining material profitability.
Once the NYSE notifies the trust that regulatory staff have accepted the trust’s equity improvement plan and granted a plan period, NYSE regulatory staff will periodically review the trust to verify compliance with it. the initiatives described in the plan. Failure to progress in accordance with the Plan or to re-comply with continuous rating standards by the end of the Plan period could result in delisting of the Trust from the NYSE American.
The trust intends to remedy the non-compliance in a timely manner, has contacted the Exchange and is working diligently to complete the plan in a timely manner. The Trust fully expects and is confident that it will once again be able to meet continuous listing standards before the June 15, 2023 deadline imposed by the NYSE American.
IHT Hotel Operation revenues and profits continued to experience strong growth for the first half of fiscal 2022 (February 1, 2021 to January 31, 2022). IHT reported earnings of $ 401,564 for the second quarter of fiscal 2022 (May 1, 2021 – July 31, 2021), for the three months, which is an increase of over $ 1.6 million from the same period of the previous year ($ 1,267,385). Earnings per share based on this amount of consolidated net income was $ 0.04, up from the loss of ($ 0.14) last year.
Revenue was approximately $ 1.7 million for the second quarter of fiscal 2022 ended July 31, 2021, an increase of over 81% or greater than $ 750,000 from revenue of approximately 925,000 $ for the same period of the previous fiscal year. The substantial increase in revenues and profits during the second quarter is largely attributable to the continued successful start of the Trust’s activities in the current fiscal year 2022 (February 1, 2021 to January 31, 2022), as well as the decrease in the impact of Covid-19 and a decrease in travel restrictions.
These extremely strong results from the first six months of the current fiscal year also continued into the third quarter of the current fiscal year. Consolidated net income of approximately $ 560,000 was reported for the first half of fiscal 2022, which represents an increase of over $ 2.1 million from the first half of fiscal 2021. Profit per share based on this amount of consolidated net income was $ 0.06, up from the loss of ($ 0.18) the previous year. In addition, profits for the first half of fiscal 2022 (February 1, 2021 to July 31, 2021) far exceed their pre-Covid counterparts in fiscal 2020 and fiscal 2019 by more than 1.2 million. dollars every year.
These are all positive signs and indicate that things continue to progress positively and stay in the right direction as the travel industry, the economy as a whole and InnSuites Hospitality Trust (IHT) in particular continue to rebound and recover. to sort out. Economic conditions continued to improve for the Trust for the third consecutive quarter and also continue to improve in the third quarter of the current fiscal year, based on preliminary results. Q3, Q2 and Q1 of fiscal 2022, as well as Q4 of fiscal 2021 all showed increased signs of strength, growth and continued improvement in earnings. Our hotel activities continue to show much better performance since the start of the year for the first three quarters of fiscal 2022.
InnSuites Hospitality Trust (IHT) has made a substantial diversification investment in privately held UniGen Power, Inc. (UniGen), a company developing a patented, high profit potential and efficient innovation in clean energy production. IHT holds convertible bonds and warrants which, if fully exercised, could potentially result in IHT owning an approximate 25% stake in UniGen. IHT is informed that UniGen’s clean and energy efficient innovation is targeting its first prototype, under development since January 2020, to be operational within the next five months.
IHT has taken this step of diversifying into high technology, high profit potential, directing efficient and clean energy with an investment in UniGen Power’s next-generation 1,000,000 watt power plant.™”. IHT’s investment and that of other accredited investors totaling $ 3.65 million before and during Covid 19 allowed UniGen’s initial prototype to be operational in the first quarter of 2022, in a matter of months. Recent events have drawn more attention than ever to the urgent need for distributed primary power and emergency back-up power from efficient, cheaper and clean fuels like natural gas rather than diesel or coal. And the 1,000,000 watts generated by UniGen are, for example, enough power for 350 homes.
Taking advantage of the delays created by Covid 19 international travel restrictions and logistical traffic jams, UniGen has developed additional new technological innovations making its generator more efficient and robust. He expects these will lead to three new patents. And, to protect its supply chain, UniGen is shifting the manufacturing of selected international parts to US sources. While this move may increase the cost of some parts, it promises to increase the deliverability of UniGen production. Once the initial prototype is operational and EPA testing begins in Detroit, UniGen expects to receive significant interest and cash flow, including that from the $ 12 million purchase order that it currently has an industry leader.
Said James Wirth, Chairman and CEO and Chairman of the Board of Directors of IHT:
“IHT management is confident that IHT will present a plan to NYSE American in a timely manner and execute that plan in time to regain full NYSE American compliance. Profits at IHT hotels continue their strong recovery and rebound to higher levels than comparable periods prior to Covid, as IHT continues to execute its strategic plan to maximize current hotel operating profits while redeploying hotel real estate profits; and move towards IHT’s high-potential diversification investment in UniGen’s innovation of efficient and clean energy production, a positive development that is increasingly recognized by investors.
“IHT Management has long believed, as noted in previous IHT SEC filings, that the investment community continues to value IHT well below its true potential underlying value (both real estate equities / hotel operations and the potential for clean energy opportunities). “
Fiscal 2022 extended IHT’s uninterrupted and continuous annual dividends to over 50 years, with semi-annual dividends paid in July 2021 and scheduled for January 2022, continuing this impressive record of uninterrupted annual dividends.
For more information, visit www.innsuitestrust.com and www.innsuites.com.
Except for historical information, the matters discussed in this press release may include “forward-looking statements” within the meaning of federal securities laws. All statements regarding IHT’s review and exploration of potential strategic, operational and structural alternatives and the associated expected costs and benefits are forward-looking. Actual developments and business decisions may differ materially from those expressed or implied by such forward-looking statements. Significant factors, among others, that could cause IHT’s actual results and future actions to differ materially from those described in forward-looking statements include the outcome, impact, effects and uncertain results of the review. by IHT strategic, operational and structural alternatives, IHT’s success in finding qualified potential buyers for its hotel real estate, or a reverse merger partner, the success and timeline of UniGen’s clean energy innovation , the continuation of semi-annual dividends over the coming years and other risks discussed in the IHT SEC filings. IHT expressly disclaims any obligation to update any forward-looking statement contained in this press release to reflect events or circumstances that may arise after the date hereof, all of which are expressly qualified by the foregoing, except as follows. which is required by applicable law.
FOR MORE INFORMATION:
Marc Berg, Executive Vice President
INSUITES HOTEL CENTER
1730 E. NORTH AVENUE, # 122
Phoenix, Arizona 85020