It's official. Ultimate Escapes (Amex: UEI) became the first destination club to go public, as a result of a reverse IPO through Secure America. The club began trading under its new ticker symbol -- UEI -- this morning.
If you're waiting for confetti and champagne bottles to pop, keep waiting. Luxury travel is still out of favor, and the country's second largest destination club only managed to trade a scant 200 shares today.
Volume may be tight over the next few days, since many of the Secure America investors that didn't cash out are actually Ultimate Escapes member who have committed to hold the new shares through at least November 30, 2009 in order to convert their Redemption Assurance Plan balances into restricted shares.
What will be possible with Ultimate Escapes as a public company? The company plans to use its equity-raising potential as a way to acquire distressed clubs, expand overseas, and offer new club products.
Monday, November 2, 2009
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