Exela Technologies Announces Successful Completion of Exchange Offer for Shares of Common Stock
Exela Technologies, Inc. has successfully completed its exchange offer, converting approximately 41.6 million shares of Common Stock into 2.08 million shares of its newly established 6.00% Series B Cumulative Convertible Perpetual Preferred Stock. This exchange allows shareholders to gain a liquidation preference of $25.00 per share. Furthermore, a stock dividend will be issued, granting Tandem Preferred Stock with voting rights, equal to one share for each Series B Preferred Stock held. These changes enhance shareholder value and voting power.
- Successful completion of exchange offer for approximately 41.6 million shares of Common Stock.
- Shareholders gain a liquidation preference of $25.00 per Series B Preferred Stock.
- Introduction of Tandem Preferred Stock providing voting rights, enhancing shareholder engagement.
- None.
IRVING, Texas, May 17, 2022 (GLOBE NEWSWIRE) -- Exela Technologies, Inc. (“Exela” or the “Company”) (NASDAQ: XELA) announced the successful completion of its previously announced offer to exchange shares of its Common Stock for its
The Offer expired at 11:59pm, New York City time, on Monday, May 16, 2022 (the “Expiration Date”). Pursuant to the Offer, approximately 41,615,860 shares of Common Stock (excluding shares tendered pursuant to guaranteed delivery procedures) were validly tendered for exchange and not withdrawn as of the Expiration Date. Based on the foregoing, Exela will exchange all such shares of Common Stock for a total of 2,080,793 shares of Series B Preferred Stock, without prorating. Exela may accept additional shares of Common Stock in the Offer after the Expiration Date upon valid receipt of such shares pursuant to guaranteed delivery procedures. Exela will promptly issue the shares of Series B Preferred Stock to holders of validly tendered and accepted shares of Common Stock. The Series B Preferred Stock currently trades on The Nasdaq Capital Market under the symbol “XelaP”.
As disclosed in the Offer materials, in connection with the closing of the Offer, on May 17, 2022, the Board of Directors of the Company declared a stock dividend payable to each holder of record of Series B Preferred Stock as of the close of business May 17, 2022, in the form of one share of Tandem Preferred Stock, a new class of Exela Preferred Stock, for every share of Series B Preferred Stock. Receipt of Tandem Preferred Stock will functionally provide voting rights for holders of Series B Preferred Stock. On all matters submitted to a vote of the stockholders of the Company, the holders of the Tandem Preferred Stock will vote with the holders of the Common Stock as a single class. Each share of Tandem Preferred Stock will have 20 votes (representing the number of votes of the Common Stock surrendered in exchange for one share of Series B Preferred Stock), which will be subject to adjustment for stock splits and similar transactions. The Tandem Preferred Stock will trade with the Series B Preferred, and may not be transferred separately from the associated share of Series B Preferred Stock.
About Exela Technologies
Exela Technologies is a business process automation (BPA) leader, leveraging a global footprint and proprietary technology to provide digital transformation solutions enhancing quality, productivity, and end-user experience. With decades of experience operating mission-critical processes, Exela serves a growing roster of more than 4,000 customers throughout 50 countries, including over
Forward-Looking Statements
Certain statements included in this press release are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "may", "should", "would", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential", "seem", "seek", "continue", "future", "will", "expect", "outlook" or other similar words, phrases or expressions. These forward-looking statements include statements regarding our industry, future events, estimated or anticipated future results and benefits, future opportunities for Exela, and other statements that are not historical facts. These statements are based on the current expectations of Exela management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties, including without limitation those discussed under the heading "Risk Factors" in the Offer to Exchange and Exela's Annual Report and other securities filings. In addition, forward-looking statements provide Exela's expectations, plans or forecasts of future events and views as of the date of this communication. Exela anticipates that subsequent events and developments will cause Exela's assessments to change. These forward-looking statements should not be relied upon as representing Exela's assessments as of any date subsequent to the date of this press release.
Investor and/or Media Contacts:
Vincent Kondaveeti
E: vincent.kondaveeti@exelatech.com
Mary Beth Benjamin
E: IR@exelatech.com
FAQ
What is Exela Technologies' recent exchange offer?
What does the Series B Preferred Stock offer to shareholders?
What is the purpose of the Tandem Preferred Stock issued by Exela?
When did Exela's exchange offer expire?
Will there be any additional shares accepted after the exchange offer's expiration?
