XWELL Announces Plan for Strategic Investment in Medical Spas to Advance Wellness and Beauty Offerings

Rhea-AI Summary

XWELL (Nasdaq: XWEL) has announced plans to acquire medical spas by the end of 2025, supported by a recent $4 million private placement. The company will initially target metropolitan areas including Orlando, Austin, and Salt Lake City.

The expansion aims to extend XWELL's wellness services beyond airports into the high-growth beauty and wellness sector. The company plans to offer various treatments including:

• Facial aesthetics and skin care treatments
• Injectables and fillers
• Body sculpting
• Laser therapies
• Massage and relaxation therapies
• Wellness and recovery services
• Weight loss management

This strategic move aligns with XWELL's mission to 'liberate wellness' by creating a comprehensive care continuum and establishing a nationwide presence in beauty and wellness services.

Positive

• Secured $4 million in private placement funding
• Expansion into high-growth medical spa market
• Geographic diversification beyond airport locations
• Diversification of revenue streams through new service offerings

Negative

• Significant capital expenditure required for acquisitions
• Execution risk in new market segment
• Competition in established metropolitan markets

Insights

Financial Analyst

XWELL's strategic push into medical spas represents a transformative capital allocation decision for this micro-cap company. The $4 million private placement is remarkably significant, essentially matching the company's entire market capitalization of $4.7 million. This injection provides substantial acquisition capital but will likely come with meaningful dilution for existing shareholders.

The medical spa industry presents attractive economics with high-margin services across multiple categories. Particularly noteworthy is XWELL's planned inclusion of weight management services with FDA-approved medications – likely referring to GLP-1 agonists that have generated substantial revenue growth in the weight loss sector. These treatments, alongside injectables and body sculpting services, could create multiple high-margin revenue streams.

This expansion represents a strategic pivot from XWELL's airport-focused operations into standalone metropolitan locations, fundamentally altering the company's growth trajectory and market positioning. The extended timeline (completion by end-2025) suggests a measured approach to acquisition integration rather than immediate transformative impact.

For a company this size, execution risk remains substantial. Successfully acquiring, integrating, and operating medical spas requires different expertise than airport wellness services. The ability to recruit and retain qualified practitioners, manage complex operations, and establish competitive differentiation in targeted metropolitan markets will ultimately determine whether this $4 million investment generates meaningful shareholder returns.

$4M Private Placement Fuels Expansion, with Initial Acquisitions Planned by Year-End

NEW YORK, March 13, 2025 (GLOBE NEWSWIRE) -- XWELL, Inc. (Nasdaq: XWEL) ("XWELL" or the "Company"), a pioneer in democratizing wellness, today announced plans to acquire select medical spas by the end of 2025, leveraging its recent $4 million private placement to expand into the high-growth wellness and beauty sector. This strategic move aligns with XWELL’s mission to “liberate wellness” by creating a seamless continuum of care, extending beyond airports and into metropolitan areas where demand for advanced beauty and wellness treatments is rising.

“The intersection of wellness and beauty is transforming the industry, and XWELL is poised to lead this evolution,” said XWELL CEO Ezra Ernst. “By acquiring and enhancing medical spas, we’re not only investing in a rapidly growing market but also ensuring that consumers have access to high-quality, science-backed wellness experiences. This expansion is a pivotal step in our vision to become the go-to nationwide brand for holistic self-care.”

XWELL will initially focus on select metropolitan areas with strong demand for medspa services, including Orlando, Austin, Texas, and Salt Lake City. Through these acquisitions, the Company aims to introduce state-of-the-art treatments, AI-driven personalization and innovative skincare solutions that align with today’s evolving wellness needs.

The global medical spa market is rapidly expanding as consumers increasingly seek non-invasive, results-driven treatments that enhance beauty, wellness and overall quality of life. XWELL’s approach will blend luxury with medical expertise and will offer a curated selection of high-impact treatments administered by certified professionals, which may include:

• Facial Aesthetics & Skin Care Treatments – Customized facials, chemical peels, and microneedling to rejuvenate skin and improve complexion.
• Injectables & Fillers – Botox, Dysport, and dermal fillers to address fine lines, wrinkles, volume loss, and facial contouring for a natural, youthful appearance.
• Body Sculpting – Non-invasive treatments such as CoolSculpting and radiofrequency skin tightening, helping clients achieve their desired body shape without the need for surgery.
• Laser Therapies – State-of-the-art laser treatments for skin resurfacing, hair removal, and pigmentation correction, ensuring clients receive safe and effective results.
• Massage & Relaxation Therapies – A variety of therapeutic massages to improve circulation, reduce stress, and promote relaxation and wellness.
• Wellness and Recovery Services – Including IV hydration therapy, vitamin shots, and other restorative treatments to help clients optimize their health and well-being.
• Weight Loss Management – Achieve weight loss goals with physician-guided treatments, including FDA-approved medications designed to support safe and effective results. Personalized plans help optimize appetite control, metabolism, and overall wellness.
  

This move is part of XWELL’s long-term strategy to establish a nationwide presence in beauty and wellness, delivering cutting-edge self-care solutions that prioritize health, confidence, and well-being.

For more information on XWELL’s offerings, visit www.XWELL.com. 

About XWELL, Inc.
XWELL, Inc. (Nasdaq: XWEL) is a leading global wellness holding company operating multiple brands: XWELL™, Xpres Spa^®, Treat™, Naples Wax Center^®, XpresCheck^® and HyperPointe™. 

• Xpres Spa is a leading retailer of wellness services and related products.
• Naples Wax Center is a group of upscale skin care boutiques.
• XpresCheck, in partnership with the CDC and Ginkgo Biosecurity, conducts biosurveillance monitoring in its airport locations.
• HyperPointe is a leading digital healthcare and data analytics relationship company serving the global healthcare industry.

Forward-Looking Statements
This press release may contain "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These include statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "estimates," "projects," "intends," "should," "seeks," "future," "continue," or the negative of such terms, or other comparable terminology. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, without limitation: the anticipated use of proceeds from the private placement. Forward-looking statements relating to expectations about future results or events are based upon information available to XWELL as of the date of this press release, and are not guarantees of the future performance of the Company, and actual results may vary materially from the results and expectations discussed. Additional information concerning these and other risks is contained in the Company’s Annual Report on Form 10-K, as amended, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and other Securities and Exchange Commission filings. All subsequent written and oral forward-looking statements concerning XWELL, or other matters and attributable to XWELL or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. XWELL does not undertake any obligation to publicly update any of these forward-looking statements to reflect events or circumstances that may arise after the date hereof.

Media
Valentina Marmolejo
MWW
vmarmolejo@mww.com

FAQ

What is XWELL's expansion plan for medical spas in 2025?

XWELL plans to acquire select medical spas in metropolitan areas including Orlando, Austin, and Salt Lake City by the end of 2025, funded by a $4 million private placement.

What treatments will XWELL's medical spas offer?

The medical spas will offer facial aesthetics, injectables, body sculpting, laser therapies, massage services, wellness recovery, and weight loss management treatments.

How much funding did XWELL (XWEL) secure for its medical spa expansion?

XWELL secured $4 million through a private placement to fund its medical spa acquisition strategy.

Which cities is XWELL targeting for its initial medical spa acquisitions?

XWELL is initially targeting Orlando, Austin, Texas, and Salt Lake City for its medical spa acquisitions.