THE WHAT? XpresSpa Group has published a business update and announced that it has filed its financial results for the first quarter of fiscal 2020.
THE DETAILS The company is piloting a COVID-19 testing facility at JFK International Airport and is said to be in ‘active discussions’ with other US airports regarding the potential roll out of this facility.
Comparable store sales dropped 26.5 percent for the three months ended March 31, 2020, with revenue dropping to US$7.7 million as all spas were temporarily closed effective March 24, 2020.
The company has raised some US$43 million of gross proceeds in a series of registered direct equity offerings since the end of March, helping to shore up its balance sheet and ease cash flow.
THE WHY? Doug Satzman, XpresSpa Group CEO, stated, “The approximately US$48 million in gross proceeds that we have raised since January, through a series of registered direct equity offerings have been truly transformational for XpresSpa and we appreciate the investment community’s confidence in us as we work to reimagine our health and wellness service offerings. These series of transactions have substantially strengthened our financial condition and enhanced our flexibility by significantly increasing our cash position. Our near-term objective with these proceeds is to explore emerging health and wellness opportunities that we can rollout to our portfolio as well as consider additional COVID-19 testing sites through our XpresCheck brand. In addition, we saw the Company’s balance sheet further strengthened by investors converting all preferred stock into common shares, and elimination by conversions of a substantial majority of its outstanding debt.”