So, you know how sometimes a company gets a cash infusion and the market reacts? Well, XWELL Inc. (XWEL) just got a textbook example of that, with its stock price more than tripling on Wednesday. The reason? A rather substantial private placement deal.

The wellness company announced it has entered into a securities purchase agreement with American Ventures, LLC. The deal is designed to raise approximately $31.3 million. The money will come from the issuance of something called Series H Convertible Preferred Stock.

Here's how the conversion works: this preferred stock can be turned into about 66.66 million shares of XWELL's common stock. The initial conversion price is set at 47 cents per share. The agreement also includes warrants, which are essentially long-term options to buy more stock.

Now, what's a company to do with all that fresh capital? XWELL has a plan. A portion of the proceeds—$9 million in total—is earmarked for some financial housekeeping. The company intends to use $5.95 million to buy back certain notes from institutional investors. The rest will go toward redeeming its existing Series G preferred stock. It's a move that simplifies the capital structure and reduces future obligations.

The transaction is anticipated to close on or around Thursday. Investors clearly liked what they heard. XWELL shares closed Wednesday's trading session up a staggering 221.43% at $1.22.