XpresSpa Completes Issuance of $3 Million in Convertible Preferred Equity to Calm at $0.62 per Share
NEW YORK, Jan. 08, 2019 (GLOBE NEWSWIRE) -- XpresSpa Group, Inc. (Nasdaq: XSPA), a health and wellness holding company, today announced that Calm, the leading app for sleep, meditation and relaxation, completed its strategic investment in XpresSpa for the full amount of $3 million in preferred equity, convertible at $0.62 per share. This is a significant premium to the market price and demonstrates Calm’s belief in the Company’s industry leading wellness platform.
The strategic partnership between XpresSpa and Calm was first announced on November 13, 2018, at which time Calm funded $2 million of the $3 million of preferred stock. The remaining $1 million was funded on December 31, 2018 as it had been subject to certain closing conditions which have since been met. The convertible preferred equity has a 7-year maturity.
Calm was named Apple’s 2017 iPhone App of the Year and boasts more than 40 million downloads to date, averaging 75,000 new users daily. This strategic partnership enables both companies to leverage off of one another’s subscribers, users, and loyalty base and integrates Calm’s meditation app into a broad array of XpresSpa services. Calm flagship products – Digital App Subscriptions, Sleep Mist and the Calm Book – are now available at all 52 XpresSpa domestic locations.
Ed Jankowski, XpresSpa Group CEO, stated, “We are pleased to have forged a long-term, strategic partnership with Calm that we expect will be mutually beneficial over time. The proceeds are now being deployed to raise our brand profile in new and existing markets and will enhance our customers’ experience in a number of different ways, including elevating the assortment of retail products and upgrading facilities.”
About XpresSpa Group, Inc.
XpresSpa Group, Inc. (Nasdaq: XSPA) is a health and wellness holding company. XpresSpa Group’s core asset, XpresSpa, is the world’s largest airport spa company, with 57 locations in 23 airports globally, including one off-airport spa at Westfield World Trade Center in New York City. XpresSpa offers services that are tailored specifically to the busy customer. XpresSpa is committed to providing exceptional customer experiences with its innovative premium spa services, as well as exclusive luxury travel products and accessories. XpresSpa serves almost one million customers per year at its locations in the United States, Holland, and the United Arab Emirates. XpresSpa Group’s non-core assets include Infomedia and intellectual property assets. To learn more about XpresSpa Group, visit: www.XpresSpaGroup.com. To learn more about XpresSpa, visit www.XpresSpa.com
Investor Relations:ICRRaphael Gross(203) 682-8253