SOURCE: Supertel Hospitality, Inc.
NORFOLK, NE--(Marketwired - May 15, 2014) - Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT), today announced additional information on its previously announced rights offering. The company previously set the close of business on April 24, 2014 as the record date (the "Record Date") for the distribution of subscription rights for common stock of Supertel. Each subscription right will entitle its holder to purchase one share of common stock of Supertel for $1.60 per share. Supertel is issuing at no charge to the holders of its common stock and 6.25% Series C Cumulative Convertible Preferred Stock, or the Series C Preferred Stock, transferable subscription rights to purchase shares of common stock of Supertel. Each holder of common stock will receive one subscription right for each full share of common stock owned by that holder as of the close of business on the Record Date. The holder of the Series C Preferred Stock will receive 3,750,000 subscription rights, equal to the number of shares of common stock into which the Series C Preferred Stock may be converted as of the Record Date.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any security, nor shall there be any offer or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. A registration statement relating to rights offering and the sale of common stock of Supertel has been filed by Supertel with the Securities and Exchange Commission, but has not yet become effective. The subscription rights may not be exercised or transferred nor may offers to exercise or transfer be accepted prior to the time the registration statement becomes effective. The offering of common stock of Supertel in the rights offering will be made only by means of a prospectus, which is a part of such registration statement. Supertel presently expects to distribute the subscription rights to its shareholders, including instructions on how to exercise the rights, as soon as practicable following the time the registration statement becomes effective.
About Supertel Hospitality, Inc.
Supertel Hospitality, Inc. (NASDAQ: SPPR) is a self-administered real estate investment trust that specializes in the ownership of select-service hotels. The company currently owns 66 hotels comprising 5,843 rooms in 21 states. Supertel's hotels are franchised by a number of the industry's most well-regarded brand families, including Hilton, Choice and Wyndham. For more information or to make a hotel reservation, visit www.supertelinc.com.
Forward Looking Statement
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These risks are discussed in the Company's filings with the Securities and Exchange Commission.