Exela Technologies Cancels Vote on Reverse Split

Rhea-AI Summary

Exela Technologies (NASDAQ: XELA) announced the cancellation of its special stockholders meeting originally scheduled for May 3, 2022, which aimed to approve a reverse stock split. The decision underscores Exela's commitment to maintaining compliance with Nasdaq listing standards, as the company may reconsider a reverse stock split by August 8, 2022. Exela emphasizes the importance of continued Nasdaq listing for its shareholders, employees, and customers.

Positive

• Exela aims to maintain compliance with Nasdaq listing standards.
• The company may revisit the reverse stock split based on compliance requirements.

Negative

• Cancellation of the special meeting may indicate ongoing financial challenges.
• The need for a reverse stock split suggests potential issues with share price.

• Special meeting of stockholders scheduled for May 3, 2022 canceled

IRVING, Texas, April 11, 2022 (GLOBE NEWSWIRE) -- Exela Technologies, Inc. (NASDAQ: XELA) today announced that it will not proceed with the vote scheduled for May 3, 2022 seeking approval to effect a reverse stock split. The Special Meeting of Stockholders scheduled for that date has been canceled.

The Company believes continued listing on Nasdaq is important for our shareholders, employees and customers. Accordingly, Exela may revisit the need to seek a reverse stock split based on the requirement to regain compliance with the listing standard by August 8, 2022.

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The information posted on the Company's website and/or via its social media accounts may be deemed material to investors. Accordingly, investors, media and others interested in the Company should monitor the Company's website and its social media accounts in addition to the Company's press releases, SEC filings and public conference calls and webcasts.

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 60% of the Fortune® 100. Utilizing foundational technologies spanning information management, workflow automation, and integrated communications, Exela’s software and services include multi-industry, departmental solution suites addressing finance and accounting, human capital management, and legal management, as well as industry-specific solutions for banking, healthcare, insurance, and the public sector. Through cloud-enabled platforms, built on a configurable stack of automation modules, and over 17,000 employees operating in 23 countries, Exela rapidly deploys integrated technology and operations as an end-to-end digital journey partner.

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 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

Why was the special meeting of Exela Technologies stockholders canceled?

The special meeting was canceled as Exela decided not to proceed with the vote on a reverse stock split.

What is the new timeline for Exela Technologies to address Nasdaq compliance?

Exela may consider a reverse stock split to regain compliance with Nasdaq by August 8, 2022.

What does the cancellation of the special meeting mean for Exela's shareholders?

The cancellation may indicate ongoing financial challenges, impacting shareholders' confidence.