International hospitality company Selina (Nasdaq: SLNA) has reported that it is laying off over 350 employees and closing down five properties in Mexico, Greece, the US, Austria and Costa Rica. The company, which was founded by Israelis Rafael Museri and Daniel Rudasevski, ended the first quarter with 118 properties worldwide.
None of the properties being closed and few of the layoffs will be in Israel. The properties being closed contributed $2.8 million to the company's operating loss last year and will involve one-time costs of $3.2 million.
The company also reported that Global University Systems (GUS), a privately-held European company and global high-education platform, is investing up to $50 million in Selina.
Museri said, "Securing this strategic investment from GUS marks a significant milestone for Selina. This transaction, a result of an exhaustive review of various alternatives, not only fortifies our financial standing as we work towards cash flow positivity and profitability, but also endorses our strategic goals and potential to create value for our shareholders. Our affiliation with GUS logically extends our commitment to providing exceptional experiences to an underserved group: students who learn abroad. As we work to streamline operations, curtail expenses, and enhance unit economics, we are grateful for GUS's trust in our vision and potential."
GUS will invest $10 million immediately under a secured convertible debt instrument and hopes to secure a further $20 million in PIPE investment from other investors. There is also an option for a third tranche of $10 million in either PIPE investment or convertible debt.
Selina also reported first quarter revenue grew 31.6% from the first quarter of 2022 to $54.2 million, while net loss amounted to $30.3 million, down from $38.3 million in the corresponding quarter of 2022.
Selina listed on Nasdaq at the end of 2022 following a SPAC merger at a company valuation of $1.2 billion after money6, or an enterprise value of $942 million less cash. Selina's share price is currently down 2.95% on Wall Street at $1.17, giving a market cap of $115.359 million.
Published by Globes, Israel business news - en.globes.co.il - on June 28, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.