Trump family-linked investment group backs small-cap spa company XWell

Investment group American Ventures, linked to the children of U.S. President Trump, has acquired shares of small-cap spa operator XWell. By the World Cup of soccer in June, the company plans to roll out AI-powered infectious disease screening at U.S. airports, the FT reports.

American Ventures, managed by broker Dominari Securities, purchased 31,333 preferred shares of XWell and nearly 66.7 million warrants that can be converted into common stock, according to filings submitted to the U.S. Securities and Exchange Commission. The filings were published in March, but the deal had not previously been widely reported, the FT notes.

The deal with American Ventures will bring XWell approximately $31.3 million, the issuer said in February when it first announced the agreement (the deal had not yet closed at that time). By comparison, at the close of trading on Thursday (U.S. markets were shut on Friday), XWell’s market capitalization stood at just $6.1 million.

American Ventures can convert the preferred shares into 66.7 million common shares and receive the same number of shares upon exercise of the warrants, the SEC filings state. However, following conversion, the stake of the investment firm and its affiliates may not exceed 4.99% of the issuer’s equity.

In early trading on Monday, XWell shares were up nearly 16% to $1.24 apiece.

Through its subsidiaries, XWell operates wellness centers, a spa business, and waxing salons in Florida, and also provides rapid medical testing at U.S. airports.

Initially, the company tested incoming travelers for COVID-19. As the spread of the disease slowed, it shifted to the Centers for Disease Control and Prevention’s Traveler-based Genomic Surveillance program. Launched in 2021, the initiative aims to rapidly detect new variants.

By the World Cup, which will take place in the U.S. in June, XWell plans to roll out AI-powered infectious disease screening at U.S. airports. The deal between American Ventures and the small-cap company came three weeks after the latter entered into a partnership agreement with PieQ, which specializes in AI-driven predictive analytics, the FT writes.

Last Wednesday, XWell reported a net loss of $17 million in 2025 on revenue of $29.2 million. Most of it – about 60% – came from its 25 XpresSpa outlets, which offer manicures, massages, and “rejuvenation” services, including LED face masks and chakra beds (above which seven polished colored quartz crystals are suspended, each corresponding to a specific chakra; in alternative medicine, they are believed to balance energy), at airports in the U.S., the UAE, and Turkey, the FT notes.

Since the start of the year, XWell shares have surged more than 132%. The bulk of the gains came in late February, when the company announced the agreement with American Ventures.

Only one Wall Street analyst currently covers XWell. The analyst recommends “buy,” with a target price of $7 per share, which is seven times the last closing price.