{"id":801047,"date":"2025-01-15T08:38:44","date_gmt":"2025-01-15T13:38:44","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/xwell-announces-closing-of-4-million-private-placement-consisting-of-convertible-preferred-stock-and-warrants\/"},"modified":"2025-01-15T08:38:44","modified_gmt":"2025-01-15T13:38:44","slug":"xwell-announces-closing-of-4-million-private-placement-consisting-of-convertible-preferred-stock-and-warrants","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/xwell-announces-closing-of-4-million-private-placement-consisting-of-convertible-preferred-stock-and-warrants\/","title":{"rendered":"XWELL Announces Closing of $4 Million Private Placement Consisting of Convertible Preferred Stock and Warrants"},"content":{"rendered":"
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NEW YORK, Jan. 15, 2025 (GLOBE NEWSWIRE) — XWELL, Inc. (Nasdaq: XWEL) (“XWELL” or the “Company”), an authority in wellness solutions for people on the go, today announced the closing of its private placement offering of $4 million of the Company\u2019s newly designated Series G Convertible Preferred Stock. The Company also issued to the investors in the private placement Series A warrants and Series B warrants exercisable for the Company\u2019s common stock.<\/p>\n

The gross proceeds of the private placement were approximately\u00a0$4.0 million, before deducting other offering expenses payable by the Company. XWELL intends to use the net proceeds of this private placement for working capital and general corporate purposes as part of the strategy outlined in the shareholder letter dated December 5, 2024.<\/p>\n

\u201cThis funding will empower us to advance the development and deployment of innovative AI-driven health, wellness, and beauty products,\u201d said CEO Ezra Ernst. \u201cIt will also support the continued expansion of our XWELL locations beyond airports and enable us to further enhance our integrated branding efforts. This move proves that we are already activating against the strategy set forth in late 2024.\u201d<\/p>\n

The securities offered in the private placement consist of 4,000 shares of Series G Convertible Preferred Stock with an initial conversion price equal to $1.496, Series A warrants exercisable at a price equal to $1.496, and Series B warrants exercisable at a price equal to $1.7952. Both the Series A warrants and Series B warrants are exercisable immediately and expire five years from the date of issuance.<\/p>\n

The securities offered and sold by XWELL in the private placement were offered and sold in transactions exempt from the registration requirements of the Securities Act of 1933, as amended (the \u201cSecurities Act\u201d), pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities Act and in reliance on similar exemptions under applicable state laws. Accordingly, the securities and underlying shares of common stock may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. The Company has agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the shares of common stock issuable upon conversion of the Series G Convertible Preferred Stock and exercise of the related warrants issued in connection with the private placement.<\/p>\n

The full conversion of the Series G Convertible Preferred Stock and the full exercise of the accompanying warrants are subject to stockholder approval. Additional information regarding the Convertible Preferred Stock and Warrants will be included in a Current Report on Form 8-K to be filed with the U.S. Securities and Exchange Commission.<\/p>\n

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in this private placement, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.<\/p>\n

\n About XWELL, Inc.\u00a0<\/strong>\n <\/p>\n

XWELL, Inc. (Nasdaq: XWEL) is a leading global wellness holding company operating multiple brands: XpresSpa\u00ae, Treat\u2122, Naples Wax Center\u00ae, XpresCheck\u00ae and HyperPointe\u2122.<\/p>\n