XWELL partners with Priority Pass for airport spa services

NEW YORK - XWELL Inc. (NASDAQ:XWEL), a prominent wellness company, has announced a new partnership with Priority Pass, the leading airport experiences program. Starting today, select Priority Pass members can access XWELL's Zero Gravity Massage Loungers at six major U.S. airports, with an expansion to all 17 XpresSpa locations planned for September 16, 2024.

The collaboration aims to bring premium relaxation services to travelers, enhancing the airport experience. XWELL's CEO, Scott Milford, expressed enthusiasm for the partnership, highlighting the popularity of the loungers among travelers and the potential for increased revenue through autonomous services. Jeremy Dalkoff, Priority Pass's Vice President of Partnerships, echoed this sentiment, emphasizing the value added to their members' travel experience.

XWELL operates multiple wellness brands, including XpresSpa, which has 33 locations in 16 airports globally. The company is also engaged in biosurveillance monitoring through XpresCheck and operates digital healthcare and data analytics services via HyperPointe.

The partnership with Priority Pass aligns with XWELL's business strategy to leverage autonomous services for higher margins. It is also expected to expand the company's reach to a broader audience of travelers seeking comfort and relaxation during their journeys.

This news is based on a press release statement from XWELL, Inc.

In other recent news, XWELL, Inc. has initiated a Tax Benefits Preservation Plan to protect the company's tax attributes related to its reported net operating losses of approximately $67.3 million. The plan involves issuing a dividend of one Series A Junior Participating Preferred Stock purchase right on each outstanding share of XWELL's common stock. Additionally, the company has announced a registered direct offering of 652,705 shares at $2.18 each, aiming to raise approximately $1.4 million for working capital and general corporate purposes.

Simultaneously, XWELL is involved in a legal dispute with shareholder CPC Pain & Wellness SPV, LLC (CPC), which holds 9.42% of XWELL's shares. CPC has initiated legal action against XWELL's board of directors, accusing them of breaching fiduciary duties and blocking alternative director nominations. In response, XWELL has contested CPC's board takeover attempt, claiming non-compliance with SEC's filing requirements and the company's bylaws.

These recent developments come amid a significant decline in shareholder value for XWELL and substantial net operating losses. CPC's proposed directors aim to refocus on cost efficiencies and profitability, suggesting a strategy to use the company's remaining cash to acquire profitable businesses in the health and wellness sector. The outcome of these developments could significantly influence the company's governance and strategic direction.

InvestingPro Insights

XWELL Inc. (NASDAQ:XWEL), while forging new partnerships to enhance its wellness offerings in airports, presents a mixed financial outlook according to the latest data from InvestingPro. With a market capitalization of 9.46 million USD, the company holds a unique position in the wellness industry. Despite a revenue growth of 13.54% in the last quarter, XWELL's overall revenue declined slightly by 1.95% over the last twelve months, as of Q2 2024. This suggests that while the company is experiencing some positive quarterly momentum, it still faces challenges in sustaining long-term revenue growth.

InvestingPro Tips indicate that XWELL does not pay dividends to shareholders, which may be a consideration for income-focused investors. Additionally, analysts do not anticipate the company will be profitable this year, which is reflected in a negative P/E ratio of -0.36. However, it's noteworthy that XWELL holds more cash than debt on its balance sheet, which can provide some financial flexibility in its operations and expansion efforts.

For investors considering XWELL's stock, it's important to note that the stock price has shown significant volatility, with a 13.46% decline over the last month and a 56.1% drop over the last year. Such volatility could be a factor for risk-averse investors. For a deeper dive into XWELL's financial health and stock performance, there are over 10 additional InvestingPro Tips available, offering a comprehensive analysis for those looking to make an informed investment decision.

The company's strategic move to partner with Priority Pass could potentially catalyze future growth, but investors may want to weigh this against the company's recent financial performance and volatility in stock price. For further insights and tips, interested parties can visit InvestingPro at: https://www.investing.com/pro/XWEL.

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