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Subsequent Events
9 Months Ended
Oct. 31, 2015
Subsequent Events [Abstract]  
Subsequent Events

13. SUBSEQUENT EVENTS

 

On November 9, 2015, Ontario Hospitality Properties LLLP, a subsidiary of InnSuites Hospitality Trust (the “Trust”), entered into a Purchase and Sale Agreement (“Sale Agreement”) to sell its Best Western InnSuites Ontario Hotel and Suites property to Bong Choi and/or Assignee (“Buyer”) an unrelated third party to the Trust for $14.8 million with an estimated close on February 1, 2016 subject to IHT Board of Trustees approval, Ontario Hospitality Properties LLLP partners approval, a financing contingency and the buyer property review.

 

On November 30, 2015, the Trust, in an equity private placement, sold 704,225 Shares of Beneficial Interest of the Trust to Rare Earth Financial, LLC (“REF”) at $2.13 per share which was the closing price of the stock on November 30, 2015. REF is owned by Mr. James Wirth, Chairman and CEO, Mrs. Gail Wirth, Mr. Wirth’s spouse, and their four children including Pamela Barnhill, the Trust’s President and Vice Chairperson of the Board. On November 30, 2015, both the Audit Committee and Board of Trustees of the Trust, after carefully reviewing the related party issues of this transaction, approved this private placement with approval from the NYSE MKT on the Trust’s NYSE MKT Listing Application. This private placement was conducted in reliance on as exemption from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. The Trust believes that with this private placement and the controlling equity of approximately $4.74 million as of October 31, 2015, the Trust will meet the NYSE MKT Sections 1003(a)(i), 1003(a)(ii) and 1003(a)(iii) of the NYSE MKT Company Guide.