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XpresSpa Group Announces $35.3M Registered Direct Offering Priced At-The-Market Under Nasdaq Rules

NEW YORK, Aug. 26, 2020 (GLOBE NEWSWIRE) -- XpresSpa Group, Inc. (NASDAQ:XSPA) (“XpresSpa” or the “Company”), a health and wellness company, today announced that it has entered into

Benzinga · 08/26/2020 10:51

NEW YORK, Aug. 26, 2020 (GLOBE NEWSWIRE) -- XpresSpa Group, Inc. (NASDAQ:XSPA) (“XpresSpa” or the “Company”), a health and wellness company, today announced that it has entered into securities purchase agreements with several healthcare-focused and other institutional investors to purchase 11,216,932 of its shares of common stock (or common stock equivalents in lieu thereof) and short-term warrants to purchase up to an aggregate of 11,216,932 shares of common stock, in a registered direct offering priced at-the-market under Nasdaq rules.  The combined purchase price for one share of common stock (or common stock equivalent) and a warrant to purchase one share of common stock is $3.15. The warrants have an exercise price of $3.02 per share, will be immediately exercisable, and will expire 24 months from the issue date.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

The gross proceeds from the registered direct offering are expected to be approximately $35.3 million before deducting placement agent fees and other offering expenses. The Company intends to use the net proceeds for future locations, as well as for working capital and general corporate purposes. The registered direct offering is expected to close on or about August 28, 2020, subject to the satisfaction of customary closing conditions.

The securities described above are being offered pursuant to a "shelf" registration statement (File No. 333-240084) filed with the Securities and Exchange Commission (SEC) and declared effective on August 5, 2020. Such securities may be offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A prospectus supplement and the accompanying prospectus relating to the offering of the securities will be filed with the SEC. Electronic copies of the prospectus supplement and the accompanying prospectus relating to the offering of the securities may be obtained, when available, on the SEC's website at http://www.sec.gov or by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by e-mail: placements@hcwco.com or by telephone: (646) 975-6996.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor there any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.