Business
Target Hospitality Provides Update on Pecos Children's Center Contract
THE WOODLANDS, Texas, Feb. 24, 2025 /PRNewswire/ -- Target Hospitality Corp. ("Target Hospitality", "Target" or the "Company") (Nasdaq: TH), one of North
About this update from Target Hospitality Corp.
[{"type":"text","content":"THE WOODLANDS, Texas, Feb. 24, 2025 /PRNewswire/ -- Target Hospitality Corp. (\"Target Hospitality\", \"Target\" or the \"Company\") (Nasdaq: TH), one of North America's largest providers of vertically integrated modular accommodations and value-added hospitality services, received notice that the U.S. government intends to terminate the existing Pecos Children's Center (\"PCC\") services agreement with Target's nonprofit partner (\"NP Partner\"), effective immediately, or on or about February 21, 2025 (\"Effective Date\"). \n\nTarget provided facility and hospitality solutions to the NP Partner through a lease and services agreement (\"PCC Contract\") utilizing Target's owned modular assets and real property, capable of supporting up to 6,000 individuals. As previously disclosed, the NP Partner may terminate the PCC Contract with the Company for convenience. The NP Partner has provided notice to Target of their intention to terminate the PCC Contract as of the Effective Date.\nTarget will retain ownership of these assets, enabling the Company to continue utilizing these modular solutions and real property to support customer demand across its existing operating segments and other potential growth opportunities. \nTarget is actively engaged in re-marketing these assets, along with other existing modular solutions, as it pursues a strong pipeline of growth opportunities. These opportunities include a growing number of potential solutions supporting the U.S. government's current immigration policies, including utilizing the Company's previously leased assets located in Dilley, Texas. \nGiven the notice of termination of the PCC Contract, the Company is withdrawing its previously issued preliminary 2025 financial outlook. Target intends to provide operational and financial updates, giving effect to the termination of the PCC Contract, in the near term.\nAbout Target Hospitality\nTarget Hospitality is one of North America's largest providers of vertically integrated modular accommodations and value-added hospitality services in the United States. Target builds, owns and operates a customized and growing network of communities for a range of end users through a full suite of value-added solutions including premium food service management, concierge, laundry, logistics, security and recreational facilities services.\nCautionary Statem...