05:00 PM EST, 11/15/2024 (MT Newswires) -- LuxUrban Hotels ( LUXH ) said late Friday it will implement a 1-for-70 reverse split of its common stock, which will become effective on Wednesday.

The company said the split, which was approved during a special shareholders' meeting on Tuesday, will help fortify its standing in the Nasdaq Capital Markets, improve the stock's trading profile, and pave the way for future expansion.

LuxUrban shareholders also approved a proposal to waive the 19.99% share limitation under a Nasdaq rule to allow the company to issue additional common shares for the conversion of certain convertible promissory notes and the exercise of outstanding warrants.

With this approval, LuxUrban said it can continue to uphold its adherence to Nasdaq's listing requirements.

Shares of LuxUrban Hotels ( LUXH ) were down more than 9% in after-hours activity.