Reports Issued By Industry Analysts and Proxy Advisory Firm ISS Call into Question Rationale of Ashford Hospitality Trust, Inc.'s Proposed ~94% Dilutive Exchange Offers
ATLANTA, Sept. 28, 2020 /PRNewswire/ -- Cygnus Capital, Inc. (together with its affiliates, "Cygnus Capital"), one of the largest stockholders of Ashford Hospitality Trust, Inc. (the "Company" or "AHT") (NYSE:AHT), beneficially owning approximately 7.8% of the Company's outstanding common stock, today highlighted significant reservations made by Institutional Shareholder Services ("ISS") in its report dated September 25, 2020 concerning AHT's upcoming special meeting of stockholders scheduled to be held on October 6, 2020. AHT is managed by AINC, another public company which on a fully diluted basis is owned ~70.1% by AHT's Chairman, Monty Bennett, his father and AHT's Chairman Emeritus, Archie Bennett, Jr., and other AHT insiders. Release a comparative analysis of how the AHT Board has argued they can't explore many alternative transactions because doing so would trigger a termination fee owed to AINC and yet they can simultaneously sign off and approve of a highly dilutive transaction to common stockholders that seems to only benefit AINC. Cygnus Capital believes that lenders to AHT would generally rather extend some terms to AHT than to foreclose assets. If AHT is able to make it through this difficult period, the common and preferred stock could dramatically recover.