Target Hospitality Corp. (NASDAQ: TH) has just received notice from the U.S. government of the intention to terminate the existing South Texas Family Residential Center ("STFRC") services agreement in 60 days, or on or about August 9, 2024. As a result, the company's migrant programming partner also intends to terminate the STFRC contract at the same time.
The company will retain ownership of the assets, allowing it to continue utilizing these modular solutions to support customer demand across its existing operating segments and potential growth opportunities.
Following this notice, Target Hospitality intends to provide operational and financial updates prior to June 30, 2024, to reflect the impact of the termination.
Target Hospitality is one of North America's largest providers of vertically integrated modular accommodations and value-added hospitality services, offering a suite of solutions including premium food service management, concierge, laundry, logistics, security, and recreational facilities services.
The company has issued a cautionary statement regarding forward-looking statements, emphasizing that certain statements made in the press release, including the financial outlook, are intended to identify potential future developments. As a result of these announcements, the company's shares have moved -32.8% on the market, and are now trading at a price of $7.06. For the full picture, make sure to review Target Hospitality's 8-K report.
