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- Ashford Hospitality Trust (NYSE:AHT) shares climb ~27% in two sessions since the company disclosed an agreement will allow it to sell up to $40M of shares of common stock to Lincoln Park Capital Fund, a move that will help it stay afloat as the hotel and travel industry suffers from the pandemic.
- In late trading on Wednesday, AHT was up 11% to $3.50.
- The stock purchase agreement will effectively function like an at-the-market share sale program, albeit a "slightly more expensive one," Baird analyst Michael Bellisario points out in a note.
- "Ashford Trust's liquidity position continues to deteriorate given its corporate-level cash burn profile, which is likely to continue for several more quarters, and the ability to issue common equity to LPC provides an additional financial backstop and liquidity bridge until fundamentals improve," Bellisario said.