MHI Hospitality Corporation Announces Amendment to Warrant

WILLIAMSBURG, Va.--(BUSINESS WIRE)--MHI Hospitality Corporation (NASDAQ: MDH) (the “Company”) announced today that the Company has entered into an amendment (the “Amendment”) of the warrant (the “Warrant”) to purchase 1,900,000 shares of the Company’s common stock issued on April 18, 2011, as amended, in favor of Essex Illiquid, LLC and Richmond Hill Capital Partners, LP (collectively, the “Investors”). Via the Amendment, the Investors and their affiliated group are permitted to acquire up to an aggregate of the lesser of (i) 500,000 shares of common stock and (ii) 5.0% of the issued and outstanding shares of common stock, in addition to the Warrant shares. Pursuant to the Amendment, if the Investors hold any additional authorized shares at the time the Warrant is exercised, the Investors will be required to certify to the Company compliance with certain beneficial ownership limits. The Investors further agreed to vote any additional authorized shares acquired by them in the same proportions as votes cast in respect of common stock held by other Company stockholders.