XpresSpa Group Inc (XSPA)

[WALL STREET KID]

On June 4, 2020, XpresSpa Group, Inc., a Delaware corporation (the “Company”), entered into a Warrant Exchange Agreement

(the “Exchange Agreement”) with the holder of certain existing warrants (the “Exchanged Warrants”) to purchase shares of Company’s common stock, par value $0.01 per share (the “Common Stock”). The Exchanged Warrants were originally acquired pursuant to a separately negotiated private transaction between the holder and a separate investor in the Company. Pursuant to the Exchange Agreement, on the closing date the holder of the Exchanged Warrants will exchange the Exchanged Warrants for 6,186,377 shares (the “New Shares”) of Common Stock (the “Exchange”). To the extent the holder of the Exchanged Warrants would otherwise beneficially own in excess of any beneficial ownership limitation applicable to such holder after giving effect to the Exchange, the holder’s Exchanged Warrants shall be exchanged for a number of New Shares issuable to the holder without violating the applicable beneficial ownership limitation and the remainder of the holder’s Exchanged Warrants shall automatically convert into pre-funded warrants to purchase the number of shares of Common Stock equal to the number of shares of Common Stock in excess of the applicable beneficial ownership limitation. The closing is expected to take place on the first business day on which the conditions to the closing are satisfied or waived, subject to satisfaction of customary closing conditions.



The Exchange will be conducted pursuant to the exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), provided by Section 3(a)(9) of the Securities Act.



The foregoing description of the Exchange Agreement does not purport to be complete and is subject to and qualified in its entirety by reference to the full text of such document, which is attached as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference herein.



Item 1.02. Termination of a Material Definitive Agreement.



On June 1, 2020, fifteen wholly-owned subsidiaries (the “Borrowers”) of the Company entered into a payoff letter (the “Payoff Letter”) with CC Funding, a division of Credit Cash NJ, LLC (the “Lender”), pursuant to which that certain accounts receivable advance agreement, dated January 9, 2020 by and among the Borrowers and the Lender (the “Advance Agreement”), was terminated. Under the Advance Agreement, the Lender agreed to make an advance of funds in the amount of $1,000,000 for aggregate fees of $160,000, for a total repayment amount of $1,160,000 (the “Collection Amount”). The Borrowers agreed to repay the Collection Amount on or before the twelve month anniversary of the funding date of the advance by authorizing the Lender to retain a fixed daily amount equal to $4,461.54 from a collection account established for such purpose. Under the Payoff Letter, the Company repaid $733,903.34 owed under the Advance Agreement and the Lender released all security interests held on the assets of the Borrowers, including Borrowers’ existing and future accounts receivables and other rights to payment, including accounts receivable arising out of the Borrowers’ acceptance or other use of any credit cards, charge cards, debit cards or similar forms of payments.



The foregoing description of the Advance Agreement does not purport to be complete and is subject to and qualified in its entirety by reference to the full text of such document, which is attached as Exhibit 10.2 to this Current Report on Form 8-K and is incorporated by reference herein.



Item 3.02. Unregistered Sales of Equity Securities.



The information set forth above under Item 1.01 is hereby incorporated by reference into this Item 3.02.



Item 3.03. Material Modification to Rights of Security Holders.



The information set forth above under Item 1.01 is hereby incorporated by reference into this Item 3.03.

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