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      Exela Technologies Inc. (XELA) Plummets After Hours Following SEC Filing with Notice of Special Meeting - Stocks Telegraph

      By Gule Rukhsar

      Published on

      March 25, 2022

      4:20 AM UTC

      Exela Technologies Inc. (XELA) Plummets After Hours Following SEC Filing with Notice of Special Meeting - Stocks Telegraph

      On March 24, Exela Technologies Inc. (XELA) filed PRE 14A with the SEC regarding its Special Meeting of Stockholder for a reverse stock split. Following the SEC fining, XELA plunged further down in the after-hours on Thursday.

      XELA stock traded in the red during the regular session with a loss of 3.19%. While the volume of the share exchanged during the session was 33.08 million, the stock closed the session at $0.4550. Following this, the stock plunged further deep in the after-hours to reach a value of $0.4230 per share. Thus, XELA’s decline escalated in the after-hours as it lost a further 7.03% at a volume of 7.38 million shares.

      The transaction processing and enterprise information management solutions provider, Exela Technologies Inc. was founded in 2014. Currently, the company has a market capitalization of $178.67 million with its 380.14 million outstanding shares.

      XELA’s Special Meeting

      According to the SEC filing, the company will hold its special meeting of stockholders on Tuesday, May 3, 2022. Moreover, the meeting will be held virtually at 9:00 a.m., Central Time.

      The purpose of the meeting is the approval of a reverse stock split of XELA’s common stock. Further, the reverse stock split ratio range varies from 1-for-2 to 1-for-15 and would be determined at the discretion of the company’s board. The reason for the reverse stock split is to regain compliance with Nasdaq’s minimum bid requirement for continued listing. With a closing bid price of below $1.00, the company is in non-compliance with Nasdaq’s minimum bid price requirement.

      Listing of Preferred Stock

      Source: Cision News

      On March 22, the company announced the approval of its application for listing its 6.00% Series B Cumulative Perpetual Preferred Stock by Nasdaq. Thus, the Series B Preferred Stock of the company commenced trading on March 23, 2022, under the ticker symbol “XELAP”.

      XELA’s Q4 & Fiscal 2021 Results

      On March 11, XELA declared its preliminary, unaudited financial results for Q4 and fiscal 2021 which ended on December 31, 2021.

      For fiscal 2021, the company’s revenues declined by 9.7% to $1,166.6 million while the Q4 revenue went down by 6.3% to $294.3 million.

      The net loss was $142.4 million for fiscal 2021 and $70.6 million for the fourth quarter.

      Furthermore, the company had adjusted EBITDA of $173.3 million and $39.5 million in fiscal 2021 and its fourth quarter, respectively.

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