CPC Pain & Wellness SPV Issues Letter To Fellow XWELL, Inc. Shareholders; Says Under The Leadership Of The Incumbent Board, Led By Chairman Bruce Bernstein, XWELL Has Reported A Combined Net Operating Loss Of $207.3M From 2018 Through 2023

Author: Benzinga Newsdesk | July 24, 2024 09:16am

• The sole focus of CPC's position and lawsuit against XWELL's entrenched Board of Directors (the "Entrenched Directors") is to provide shareholders with an opportunity to elect a competing slate of directors to XWELL's existing Board at the next annual shareholder meeting.
• Under the leadership of the incumbent Board, led by Chairman Bruce Bernstein, XWELL has reported a combined net operating loss of $207.3 million from 2018 through 2023.
• Since February 2016, XWELL's common stock has declined in value by approximately 99%—from $1,788 per share (accounting for subsequent reverse stock splits) to $1.85 per share as of July 23, 2024.
• During the period of XWELL's near complete loss of value, the Entrenched Directors have regularly awarded and paid themselves large compensation packages at the expense of shareholders.
• CPC aims to provide shareholders with an opportunity to replace the Entrenched Directors with directors who will put shareholders' interests ahead of personal financial gain; to improve XWELL's financial health by stopping the existing cash burn and preserving cash on the balance sheet; and to explore a strategy that would use Company cash to acquire high-demand, high-margin businesses with significant positive cash flow in the health and wellness space.
  
   

NEW YORK, July 24, 2024 (GLOBE NEWSWIRE) --  Today, CPC Pain & Wellness SPV, LLC ("CPC"), a significant XWELL, Inc. (NASDAQ:XWEL) ("XWELL" or the "Company") shareholder that beneficially owns 394,200 or 9.42% of XWELL's outstanding shares, issued the below letter to its fellow shareholders. The letter informs shareholders of CPC's recent lawsuit filing against the incumbent members of XWELL's Board of Directors for breach of their fiduciary duties and for the Board's wrongful and inequitable efforts to prevent CPC from nominating a competing slate of directors and consequently denying shareholders the opportunity to choose who they elect to XWELL's Board at the upcoming annual shareholder meeting. In its letter, CPC details how current Board members have personally benefited from XWELL while overseeing an astounding decline in XWELL shareholder value and substantial net losses. CPC also shares in the below letter its vision for restoring and maximizing shareholder value.

Posted In: XWEL