[8-K] XWELL, Inc. Reports Material Event

Rhea-AI Filing Summary

N2OFF, Inc. (Nasdaq: NITO) has called a 2025 special meeting to seek shareholder approval for four key proposals.

• Acquisition: N2OFF will buy 100% of Israeli oncology start-up MitoCareX Bio Ltd. by issuing new NITO shares equal to ≈40% of post-close fully diluted shares plus up to another 25% in milestone stock, $700k cash and up to $1.6 m of future-financing proceeds. MitoCareX founders will also receive 5% RSUs and board control of the subsidiary.
• Reverse split: Board authority to effect a 1-for-2 to 1-for-150 reverse split within 12 months.
• Warrants: Approval to issue 1,850,000 common shares on exercise of a warrant held by L.I.A. Pure Capital Ltd.
• Adjournment: Standard authority if more time is needed to solicit votes.

The board unanimously recommends voting FOR all items. If approved, existing holders face substantial dilution, potential additional issuance through milestones and warrants, and the possibility of a large reverse split to maintain Nasdaq compliance. The deal adds an early-stage oncology platform but exposes N2OFF to R&D funding obligations and integration risks. Two N2OFF directors also serve on MitoCareX seller SciSparc’s board, creating related-party considerations.

Positive

• Diversification into oncology drug discovery via MITOLINE™ platform
• Potential technological synergies and strengthened management team from MitoCareX
• Milestone structure ties part of consideration to future performance

Negative

• Immediate dilution of ≈40% at closing, rising to ≈65% if milestones and warrants are met
• Large reverse split (up to 1-for-150) signals Nasdaq compliance pressure
• Ongoing cash obligation to fund MitoCareX R&D beyond initial $1 m
• Early-stage target risk: no products, limited operating history, accumulated deficit
• Related-party relationships could create perceived conflicts of interest

Insights

Financial Analyst

TL;DR: Highly dilutive biotech acquisition; strategic upside but significant execution and funding risk.

The transaction transforms N2OFF from its current scope into an early-stage oncology player, issuing up to 65% of post-close equity (40% at close + 25% milestones) and committing at least $1 m in fresh cash plus ongoing R&D support. While the MITOLINE™ platform could broaden the company’s technology stack, MitoCareX has no revenue, $2.1 m accumulated deficit and funding runway only into Q4-25, meaning N2OFF must raise capital soon—now under more dilutive terms. The optional 1-for-150 reverse split signals concern over Nasdaq bid-price compliance. Shareholders should weigh long-term optionality against near-term dilution, integration complexity and biotech execution risk.

Corporate Governance Expert

TL;DR: Governance red flags offset by clear disclosure and audit-committee approval.

Two N2OFF directors sit on the board of seller SciSparc and the target’s CSO is related to a N2OFF lender, creating conflicts. Management mitigated this via audit-committee review and full proxy disclosure, but minority shareholders still bear dilution and financing obligations. The capped indemnities, two-year rep & warranty survival and milestone-based earn-outs are standard, yet the 30% cut of future financings to sellers until $1.6 m is paid is unusual and could burden capital raises. Overall impact is neutral: governance process appears adequate, but structural terms favor sellers.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(D) of the Securities Exchange Act Of 1934

Date of report (Date of earliest event reported): July 24, 2025

XWELL, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

001-34785		20-4988129
(Commission File Number)		(IRS Employer Identification No.)

254 West 31st Street, 11th Floor, New York, New York		10001
(Address of Principal Executive Offices)		(Zip Code)

(212) 750-9595

(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.01 per share		XWEL		The Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨ 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ 

Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.

On July 24, 2025, the board of directors of XWELL, Inc. (the “Company”) approved the first amendment (the “First Amendment”) to the Third Amended and Restated Bylaws of the Company (the “Bylaws”), effective as of the same date. The First Amendment amends and restates Article I, Section 1.8 of the Bylaws in its entirety (i) to lower the required stockholder vote in all matters other than the election of directors from the affirmative vote of a majority of the voting power of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter to the affirmative vote of a majority of the votes cast by the stockholders present in person or represented by proxy at the meeting and entitled to vote on the subject matter, voting affirmatively or negatively (excluding abstentions and broker non-votes), and (ii) to make a corresponding change to the vote required for class votes.

Specifically, the amended and restated Section 1.8 states that “the stockholders entitled to vote at any meeting of stockholders shall be determined in accordance with the provisions of section 1.10 of these bylaws, subject to Section 217 (relating to voting rights of fiduciaries, pledgors and joint owners of stock) and Section 218 (relating to voting trusts and other voting agreements) of the DGCL.

Except as may be otherwise provided in the certificate of incorporation, each stockholder entitled to vote at any meeting of stockholders shall be entitled to one vote for each share of capital stock held by such stockholder which has voting power upon the matter in question. Voting at meetings of stockholders need not be by written ballot and, unless otherwise required by law, need not be conducted by inspectors of election unless so determined by the holders of shares of stock having a majority of the votes which could be cast by the stockholders present in person or represented by proxy at the meeting and entitled to vote on the subject matter, voting affirmatively or negatively (excluding abstentions and broker non-votes). If authorized by the Board, such requirement of a written ballot shall be satisfied by a ballot submitted by electronic transmission (as defined in section 7.2 of these bylaws), provided that any such electronic transmission must either set forth or be submitted with information from which it can be determined that the electronic transmission was authorized by the stockholder or proxy holder.

Except as otherwise required by law, the certificate of incorporation or these bylaws, in all matters other than the election of directors, the affirmative vote of a majority of the votes cast by the stockholders present in person or represented by proxy at the meeting and entitled to vote on the subject matter, voting affirmatively or negatively (excluding abstentions and broker non-votes), shall be the act of the stockholders. Except as otherwise required by law, the certificate of incorporation or these bylaws, directors shall be elected by a plurality of the voting power of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors. Where a separate vote by a class or series or classes or series is required, in all matters other than the election of directors, the affirmative vote of the majority of the votes cast by the stockholders of such class or series or classes or series present in person or represented by proxy at the meeting, voting affirmatively or negatively (excluding abstentions and broker non-votes), shall be the act of such class or series or classes or series, except as otherwise provided by law, the Certificate of Incorporation, these Bylaws, or the rules and regulations of any applicable stock exchange.”

The foregoing description of the First Amendment is qualified by reference to the First Amendment, a copy of which is attached hereto as Exhibit 3.1 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.		Description
3.1		First Amendment to Third Amended and Restated Bylaws of XWELL, Inc.
104		Cover Page Interactive Data File (formatted as Inline XBRL)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	XWELL, Inc.
Date: July 25, 2025	By:	/s/ Ezra T. Ernst
	Name:	Ezra T. Ernst
	Title:	President and Chief Executive Officer

FAQ

What is N2OFF (NITO) asking shareholders to approve?

Four proposals: the MitoCareX acquisition, a 1-for-2 to 1-for-150 reverse split, 1.85 m warrant shares, and potential meeting adjournment.

How much dilution will current NITO shareholders face?

≈40% at closing and up to ≈25% more on milestone achievement, plus 1.85 m warrant shares.

Why is a reverse stock split proposed?

To give the board flexibility to cure potential Nasdaq bid-price deficiencies and manage share count after dilution.

How is MitoCareX being valued in the deal?

Through equity equal to 40% of NITO plus cash and earn-outs; no cash revenue metrics were disclosed.

When will the special meeting take place?

At 4:00 p.m. Israel time (9:00 a.m. EDT) on a date in 2025 to be specified in the final proxy materials.

What funding commitments has N2OFF made to MitoCareX?

An initial $1 m (less prior loans) at closing and additional R&D funding subject to board approval and resources.