The company signed a securities purchase agreement with American Ventures on Tuesday as part of a private placement worth up to $31.3 million.
- The deal involves selling 31,333 Series H preferred shares at $1,000 each, which can be converted into about 66.7 million common shares at $0.47 per share.
- The company plans to use part of the proceeds to buy back about $6 million of certain notes from institutional investors.
- XWEL shares surged beyond $1 for the first time since Oct. 28, 2025.
Shares of XWELL, Inc. (XWEL) shot up more than 300% on Wednesday to their highest since January 2025, after the wellness solutions provider announced a $31.3 million private placement to repurchase outstanding notes and redeem certain warrants and preferred shares.
XWEL stock hit its 200-day moving average (200-DMA) for the first time in nearly four months and is on track to post its biggest-ever intraday gains on a closing basis.
Source: TradingView
$31.3 Million Deal With American Ventures
On Tuesday, the company signed a securities purchase agreement with American Ventures as part of a private placement. The deal includes the sale of 31,333 shares of Series H Convertible Preferred Stock, each priced at $1,000. These shares can be converted into about 66.7 million common shares at an initial conversion price of $0.47 per share.
The deal also includes warrants to buy up to about 66.7 million shares of the company’s common stock. These warrants can be exercised immediately at $0.345 per share and will expire three years after issuance. The transaction is expected to close on Feb. 26, 2026.
The company plans to use the $31.3 million to buy back about $6 million of certain notes from institutional investors. It will also redeem its Series G Preferred Stock and repurchase some outstanding warrants covering up to 8.8 million common shares for $9 million. The remaining funds will be used for general business expenses and working capital, XWELL added.
Stock Trades Above $1 For First Time In Nearly Four Months
XWEL shares surged beyond $1 for the first time since Oct. 28, 2025. This is significant because the company received a notice of a minimum bid price deficiency from Nasdaq on Dec. 1, 2025.
XWELL has until June 1, 2026, to fix the issue by maintaining its closing price at or above $1 for at least 10 consecutive business days.
Such notices are typically sent to companies whose shares have remained below the $1 minimum price for 30 consecutive business days. If the company does not regain compliance by June 1, it could receive additional time, potentially by carrying out a reverse stock split, or risk being delisted.
On December 18, the company’s shareholders approved a proposal allowing the company’s board to implement a reverse stock split within one year, in a ratio ranging from 1-for-2 to 1-for-20.
How Did Stocktwits Users React?
Retail sentiment on Stocktwits flipped to ‘extremely bullish’ from ‘bearish’ a day earlier, amid ‘extremely high’ message volumes.
One user expects the stock to climb to $2. It is currently at $1.5.
Another user saw resistance at $1.54.
Year-to-date, the stock has gained nearly 220%.
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