Xwell Raises $31.3M via Series H Placement, Shares Surge 220%
Xwell Inc raised $31.3 million via a private placement of Series H Convertible Preferred Stock to American Ventures, convertible into 66.66 million common shares at $0.47 per share with attached warrants. Proceeds will fund repurchase of $5.95 million in notes and redemption of Series G preferred for $9 million.
1. Private Placement Agreement
Xwell entered into a securities purchase agreement with American Ventures, LLC to issue Series H Convertible Preferred Stock yielding approximately $31.3 million. Each preferred share converts at $0.47 into common stock, totaling about 66.66 million shares, and includes accompanying warrants to purchase additional shares.
2. Planned Use of Proceeds
The company intends to deploy roughly $5.95 million of the proceeds to repurchase outstanding institutional notes and allocate $9 million toward redeeming its Series G preferred stock. These actions are designed to reduce debt obligations and simplify the capital structure ahead of the placement closing.
3. Market Reaction
Following the announcement, Xwell shares surged over 220%, closing the day at $1.22 as investors reacted to the sizeable financing and planned debt reduction measures.