Selina Hospitality Faces Delisting and Potential Insolvency Amid Liquidity Crisis

Israeli hospitality firm Selina (Nasdaq: SLNA) faces potential insolvency as its share price plunges and market cap dips to $25.7 million. The company, which had a $1.2 billion valuation after a 2021 SPAC merger, has seen massive value erosion in two years. Selina, which laid off employees and closed unprofitable sites, defaulted on a loan to Inter-American Investment Corporation and may face further credit issues. With a default notice and the inability to secure additional liquidity, the company warns of potential bankruptcy if financing is not secured. The share price, currently at $0.047, is at risk of delisting from Nasdaq, and Selina is also behind in filing its F20 report for 2023.

In the dynamic world of finance and hospitality, the story of Selina (Nasdaq: SLNA) is one of intrigue, resilience, and potential insolvency. The Israeli-based hospitality company, which boasted a market capitalization of $1.2 billion after a successful 2021 Special Purpose Acquisition Company (SPAC) merger, has seen its value erode dramatically in just two years, plummeting to a mere $25.7 million [1].

Selina, founded by CEO Rafael Museri and Daniel Rudasevski, initially sought to expand rapidly, developing more and more accommodation outlets, despite the company's lack of profitability. However, in 2023, the company underwent a significant shift in strategy, laying off 350 employees and closing loss-making sites [1].

These cost-cutting measures came as Selina faced mounting financial challenges. The company defaulted on a loan to the Inter-American Investment Corporation and may encounter further credit issues [1]. With a default notice and the inability to secure additional liquidity, Selina warns of potential bankruptcy if financing is not secured [1].

The current market turmoil has not been kind to Selina's share price, which hovers around $0.047, putting the company at risk of delisting from Nasdaq [1]. Moreover, Selina is behind in filing its F20 report for 2023 [1].

Despite these challenges, Selina's management remains optimistic. In a recent investor presentation, CEO Museri expressed confidence in the company's progress towards profitability and the strengthening of its balance sheet [2].

However, the path forward for Selina remains uncertain. With its diminished financial resources and the looming threat of bankruptcy, the company must navigate these challenging waters carefully to ensure a successful future.

References:
[1] Rafael Museri and Daniel Rudasevski. (2023, April 11). Selina share price collapses. Retrieved from https://en.globes.co.il/en/article-selina-share-price-collapses-1001476027
[2] Selina. (2023, April 18). Investor Presentation. Retrieved from https://investors.selina.com/static-files/5780dfcc-a940-469e-a938-5e8c3a70b70f