XpresSpa $XSPA: Inspiring confidence in air travel with a Covid-19 testing solution

By Kirsteen Mackay

Rapid testing for Covid-19 could help life get back to normal and economies recover. Airport screening has begun and presents a compelling investment case.

XpresSpa Group Inc (NASDAQ: XSPA) is emerging as a popular recovery stock. The company provides exclusive airport spa treatments. Not the sort of service anyone would expect to be thriving as the world still contends with a raging pandemic. But the reason for investor interest is its pivot from health and beauty to medical solution.

Presenting a Covid-19 testing solution

Rather than sit out the pandemic nursing losses and contemplating bankruptcy filings, it threw its health-in-airport expertise in to building up a Covid-19 screening business.

And it’s not the only one. Relay Medical Corp. (CSE: RELA, OTC:RYMDF) is another company following a similar path. And long-term Covid-19 testing could present a lucrative investment opportunity for those looking for a recovery play. Airports are thought to be mass-spreader locations thanks to the mix of people from so many destinations congregated in close proximity. So XpresSpa Group is expanding its in-airport Covid-19 screening platform pop-up testing facilities.

Airport Screening can help life resume

Investors are taking note because airport screening is more than a simple test. It’s the way forward in reopening global economies and getting the world moving again.

XSPA’s XpresCheck brand is now in several airport locations across the United States. A big achievement helped by its existing contacts. This is driving its revenue and creating a longer-term income stream for the company.

Although vaccine news is encouraging, the pandemic has created an unprecedented level of fear of the virus. This is not going to disappear overnight; particularly as new strains are emerging. Therefore, it’s likely to be a solution that’s here to stay.

At the moment XpresCheck has an anticipated capacity to administer over 500 tests per day. COVID-19 testing options will include the Rapid Molecular COVID-19 Test and the Polymerase Chain Reaction (PCR) Test.

Doctor wearing medical mask and visor

Rapid testing Covid-19 – Photographer: Sharon McCutcheon | Source: Unsplash

Rapid airport testing with Relay Medical

With its progress, XpresSpa is also paving the way for other companies and proving the plan works. Covid-testing company Relay Medical also has an airport testing solution and even more compelling investment case.

The Greater Toronto Airports Authority (GTAA) has begun rapid testing with the Fionet Rapid Response Group (FRR). FRR is a joint venture between Fio Corporation and Relay Medical Corp.

XSPA has a $152m market cap, while Relay Medical has a market value of $120m. Both are small companies with considerable room for growth. Relay Medical could potentially have the upper hand because it’s testing process is faster and a significantly higher volume can be achieved in a day.

Fionet’s high-throughput modular configuration is capable of processing up to 100 COVID-19 rapid antigen tests per hour with only 2 Fionet devices and 2 personnel, and this can easily be scaled into the 1000s per hour with additional devices & personnel.

Once airports get back to full capacity, testing is likely to be very popular in giving peace of mind to travellers, their employers and even insurers.

Widespread scale potential

In November the Relay Medical joint venture announced it had raised over C$500,000 in initial contracts. It’s also got massive potential for growth because once up and running the testing device can be used anywhere that people congregate. It’s not limited to airports, but could be used in schools, sports stadiums, workplaces, festivals and many more events.

There is no scientific proof behind it, but these companies are working a miracle in reducing the spread of the virus in highly contagious spaces. And Relay’s Fionet technology has been proven having been tested over a million times in the field in Africa. This was used for other high-consequence pandemics, including malaria, HIV, dengue, Ebola and more. This is an exciting investment opportunity that could help grow revenues and market cap.

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This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.

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