XpresSpa Divests Certain Key Non-Core Assets
March 08 2018 - 8:45AM
XpresSpa Group Inc. (Nasdaq:XSPA) (“XpresSpa” or the
“Company”), a health and wellness holding company, today provided
an update on the disposition of certain key non-core assets. These
include:
- On March 7, 2018, the Company signed a definitive merger
agreement to sell Group Mobile Int’l LLC (“GM”), a supplier of
built-to-order rugged computers, mobile devices and accessories, to
Route 1, Inc. (TSXV:ROI) (OTCQB:ROIUF), a Canadian software
developer, in exchange for Route1 common stock and warrants with an
estimated preliminary value of $1.0 million and an earn-out with an
estimated preliminary value of $1.0 million. In addition, the
Company expects to collect approximately $0.75 million in cash upon
the sale of certain GM inventory. The transaction is expected to
close on or before March 30, 2018. These values are preliminary and
are based on our management’s estimate of expected earnout payments
and of the values related to the stock and warrants and are subject
to change.
- In October 2017, the Company sold FLI Charge, Inc., an early
stage company that designs, develops, licenses, manufactures and
markets power transfer and charging solutions, to FLI Charge’s
management team for approximately $1.05 million in cash, of which
$0.25 million was paid upon closing and $0.8 million was paid
in the first quarter of 2018, as well as a 5% perpetual royalty and
warrants representing a 5% ownership in FLI Charge Inc.
- In January 2018, the Company sold certain patents to Crypto
Currency Patent Holdings Company LLC, a unit of Marathon Patent
Group, Inc., for approximately $1.25 million, comprised of $0.25
million in cash and 250,000 shares of common stock valued at
approximately $1.0 million at the time of the transaction.
- Separately, the Company has settled outstanding litigation and
made additional patent sales for cash consideration totaling $0.4
million.
“Our strategic focus is to build XpresSpa into a preeminent
health and wellness services company, and the monetization of these
key non-core assets frees our time and attention for deployment
into our core business growth,” said Andrew Perlman, CEO of
XpresSpa Group. “We are nearing completion of creating a pure play
wellness business, and will continue to work on completing sales of
the few remaining non-core assets.”
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 (as
of January 8, 2018), 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 Group Mobile, Infomedia, and intellectual property assets.
To learn more about XpresSpa Group,
visit: www.XpresSpaGroup.com. To learn more
about XpresSpa, visit www.XpresSpa.com.
Forward-Looking Statements
This press release contains "forward-looking" statements within
the meaning of Section 27A of the Securities Act of 1933, and
Section 21E of the Securities Exchange Act of 1934. 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.
Forward-looking statements relating to expectations about future
results or events are based upon information available to XpresSpa
Group as of today's date, 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 most
recently filed Annual Report on Form 10-K, Quarterly Report on Form
10-Q, recent Current Reports on Form 8-K and other SEC filings. All
subsequent written and oral forward-looking statements concerning
XpresSpa Group Inc., or other matters attributable to XpresSpa or
any person acting on its behalf, are expressly qualified in their
entirety by the cautionary statements above. XpresSpa Group Inc.
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.
Contacts XpresSpa Brittany
Banion SHADOW 212-972-0277 bbanion@weareshadow.com
XpresSpa Group Jody Burfening/Carolyn Capaccio
LHA 212-838-3777 ccapaccio@lhai.com
XpresSpa Group, Inc.
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