Story Content

An announcement on February 24-25, 2026, of a large private placement transaction that will raise the company about $31.3 million in gross proceeds sent shockwaves through the market in the case of XWELL, Inc. (Nasdaq: XWEL), a company providing wellness and biosecurity solutions (such as airport concessions and health screening services).

It is an at-the-market under Nasdaq pricing transaction buying approximately 31,333 shares of newly issued Series H convertible preferred stock (stated value of $1,000 / share), which is convertible into approximately 66.7 million common shares at an initial price of $0.47 / share. The warrants also come with an option to buy 66.7 million more common shares by paying an amount of $0.345 each, and the option has an expiry of three years.

The firm will allocate the net proceeds to repurchasing and redeeming its legacy debt and securities, including some 6 million outstanding company notes and Series G preferred stock, which streamline its capital structure and ease its financial overhang. Dominari Securities was the exclusive placement agent, with resale registration being allowed to the investors but 3-month lock-ups given to insiders.

Investing into the stocks: When XWEL was announced as the news of the day, it shot up almost 300 percent intraday, reaching as high as $1.40 to $1.50 in extension, way above average volume of 100 million shares. This rally is an indication of investors being excited about the new money in the market in a tough microcap environment, and this places XWELL in a position to potentially grow its operations in wellness and travel recovery markets.

Although the agreement is long-term and watered down, the short-term balance sheet clear-out and financially strengthening have generated optimism. The traders and analysts follow momentum development attentively as the placing is likely to close on or until February 26, 2026, depending on the circumstances. This spurt points to how penny stocks can be fueled up with strategic financing in unstable markets.