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  • Exela Technologies Inc. (XELA) Under Corrections Following Financing Commitment from PNC Bank

    On May 9, 2022, Exela Technologies Inc. (XELA) said that it has executed a financing commitment from PNC Bank. Consequently, the stock shot up by 28.46% in the regular trading session to trade at $0.3701 a share. Ultimately, the upsurge culminated in corrections in the following session. Thus, XELA succumbed to corrections in the after-hours as suffered a decline of 8.13% to shed its gains. Hence, the stock was then trading at a value of $0.3400 per share.

    Source: Business Recorder

    Moreover, the company will be posting its Q1 2022 financial results today, May 10, and the conference call will be held at 11:30 a.m. Eastern Time. XELA’s executive chairman Par Chadha and Chief Financial Officer Shrikant Sortur would be hosting the call and discussing the results.

    XELA’s Financing Commitment from PNC

    The three-year financing commitment from PNC Bank is executed for replacing the company’s existing securitization facility. Expected to close on or before May 31, 2022, the facility will offer up to $150 million in committed financing.

    As a business process automation company, it has seen a major amount of interest amid the continued growth of the tech sector. Therefore, a huge plus of this facility is the fact that it will allow the company to lower its annual interest by $6 million based on an initial interest rate of roughly 4%. Furthermore, this facility should also help XELA to have access to more capital and the repayment of certain debt obligations.

    A Quick Look at XELA

    While the company has continued its progress with strategic investments, partnerships, contracts, and management team strengthening, XELA has been in non-compliance with Nasdaq since last year. A steep decline in its share price led to its minimum bid price deficiency as its shares are now trading below $1. In order to increase its share price and regain compliance with Nasdaq before August 8’s deadline, the company was supposed to vote on a reverse split. But recently, it canceled the Special Meeting of stockholders, which was scheduled for May 3, to vote on the reverse split.

    It seems the company is evaluating other options before considering the reverse split again, as it still has an option for further 180 days to regain compliance.

    Conclusion

    Following a $150 million financing commitment with PNC Bank, XELA surged up on Monday only to fall under corrections. Thus, the uptick concluded in corrections for the stock before it declares its financial results today.

  • Exela Technologies Inc. (XELA) Rallies Premarket After CEO Transition News

    Exela Technologies Inc. (XELA) Rallies Premarket After CEO Transition News

    The transaction processing solutions and enterprise information management solutions provider, Exela Technologies Inc. (XELA) is rallying in today’s premarket. Having surged by 26.36% at the last check, the stock is making some big moves at over 1.2 million shares. After having been bearish for a bit, XELA’s recent price surge comes after the company announced its CEO transition yesterday, March 31, 2022. At the time of writing, the stock was trending at $0.5259 in the premarket while it closed the prior session at $0.4162 per share. The earlier session had recorded a loss of 2.57% for the stock.

    It seems investors are looking forward to the next phase of the company.

    Source: Chief Executive Magazine

    XELA’s CEO Transition

    On Thursday, the company announced that its CEO Ronald C. Cogburn will transition from his role on April 30, 2022. Having spent nearly three decades with XELA Mr. Cogburn’s tenure has finally come to an end. In his 30-year career with the company, Mr. Cogburn went from Senior Project Manager at its subsidiary to CEO of SourceHOV which is now known as Exela after it acquired Novitex and merged with Quinpario. He has been in the current role since the company made its debut in July 2017.

    Thus, with the transition of Mr. Cogburn at the end of April, Par Chadha (Executive Chairman) will hold the reins of the company along with XELA’s global senior management.

    What else has been happening?

    The company has recently completed the last of the remaining steps in its balance sheet strengthening initiative previously announced in September 2021. The company’s certain subsidiaries marked the closure of a Revolving Loan Exchange and Prepayment Agreement. Prepaying all of the outstanding amounts under the facility with $50 million cash and $50 million Notes due 2026, the company has no further senior debt maturities in 2022.

    Additionally, the Notes are of the company’s 11.500% First-Priority Senior Secured which are due in 2026.

    XELA’s Financial Analysis

    According to the preliminary results for Q4 2021, XELA’s revenue suffered a decline of 6.3% to $294.3 million in the quarter. While the ITPS segment revenue took a hit from Covid-19, healthcare solutions and legal & loss prevention services revenue both marked a YOY increase.

    On the other hand, the company was able to reduce its net and EBITDA loss in the quarter with net loss standing at $70.6 million and EBITDA loss at $3.1 million. The comparable figures for Q4 2020 were $88.9 million and $8.6 million respectively.

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

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

    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.

  • Exela Technologies, Inc. (XELA) Stock Plummeted in Premarket, Here’s why.

    Exela Technologies, Inc. (XELA) is a leading business process Automator. It leverages proprietary technology to provide online transformation solutions to enhance productivity and quality. The company’s platform includes solutions to address accounting, capital, and legal management issues.

    The price of XELA stock during the regular trading of March 10, 2022, was $0.85 with a surge of 10.5%. At the last check of the premarket session of March 11, 2022, its stock plummeted by 10%.

    XELA: Key Financials

    On March 11, 2022, XELA released its financial outcomes for the fourth quarter of 2021 ended December 31, 2021. Some of the key highlights are as follows

    Revenue

    Revenue in Q4 2021 was $294.3 million in comparison to $314.1 million in the same quarter of 2020, so the company observed a decline of 6.3% YoY in its revenue. The company missed the revenue target of $296 million.

    EPS

    Net loss in Q4 2021 was $70.6 million compared to $88.9 million in the comparable quarter of 2020.

    XELA: Events and Happenings

    On March 11, 2022, XELA reported the positive closure of its offering to exchange its common stock shares for 6.00% Aggregate Convertible Preferred Stock. On March 08, 2022, XELA announced that the executive management of the company informed about their intention to tender the cumulative 5 million common stock shares in the exchange offer. The Company’s Executive Chairman intends to tender 1,528,160 shares of the company’s common stock.

    On March 07, 2022, XELA announced the entry of its subsidiaries into a Revolving Loan Exchange and Prepayment contract with certain institutional investors. They acted as revolving investors under its Initial Lien Credit contract. On February 24, 2022, XELA informed the press about its amendment of the offer for the exchange of approximately 100,000,000 common stock shares for unsecured 6.00% senior notes due 2029.

    On February 03, 2022, XELA announced that it exceeded 6,000 clients on its Intelligent Document Processing’s work-from-anywhere portfolio.

    Conclusion

    XELA stock touched a new bottom-line in the past six months as it receded by 78% in that period as the result of the pandemic. Currently, XELA stock dipped following the fourth-quarter financial statement release. The company missed the revenue targets.

  • Exela Technologies, Inc. (XELA) surged in the current market; here is why?

    Exela Technologies, Inc. (XELA) surged in the current market; here is why?

    Exela Technologies, Inc. (XELA) gained in the current market after the company announced an increase in Exchange Offer Consideration for Common Stock to $1.25 of New Notes per Share. XELA values at $0.86 in the current market, gaining more than 6.82% compared to yesterday’s closed price. The stock closed at around $0.81 at the end of the previous trading session with a trading volume of approximately 51.62 million shares.

    Exela Technologies, Inc. (XELA) increased in Exchange Offer

    Exela Technologies, Inc. (XELA) is a multinational BPM company. SourceHOV LCC, Novitex Holdings, Inc., and Quinpario Acquisition Corp. merged to form it.

    Exela Technologies, Inc. (XELA) announced in a press release today that it has revised its previously announced offer to swap up to 100,000,000 shares of its Common Stock for unsecured 6.00 percent senior notes due 2029. Since each share of Common Stock is now worth $1.25 instead of $1.00, the total value offered per share is now $1.25 as well.

    The exchange of Common Stock for New Notes is now available in 20-share increments for $25 in New Notes for shareholders. On January 25, 2022, the stock closed at $0.55, representing a 127 percent premium. There will be a 30 percent reduction in the total number of shares when the tenders are accepted. Due to the increased price for the exchange, only 20-share lots of Common Stock may be offered and up to $125,000,000 in New Notes may be given.

    Exela Technologies, Inc. (XELA) lost around 70% in the last 12 months

    Price records contain a stock’s low and high price history over a 52-week period. In the last 52 weeks, Exela Technologies Inc. shares have fallen by 70 percent, yet it has risen by 130 percent from their lowest price point of $0.35. There was no significant change in the stock’s 52-week price range, which remained between $0.35 and $7.82.

    Exela Technologies, Inc. (XELA) shares reached a trading volume of over 51.62 million yesterday, much greater than the shares’ usual daily volumes. If we look at Exela Technologies YTD’s metrics, we see that the company has performed in the has declined market 1.38%, with revenues showing an annual decrease of 59.72%. The market cap of Exela Technologies is $159.59 million right now.

    Conclusion

    Exela Technologies, Inc. (XELA) has lost significant value in the trailing twelve months. The current exchange offer shows that the company is keen on increasing the stock value. They also have to meet the NASDAQ’s compliance of keeping the stock value above $1 per share.

  • Exela Technologies, Inc. (XELA) stock is experiencing a decrease of 6.38% – Learn more!

    Exela Technologies, Inc. (XELA) experienced a decrease of 6.38% in the aftermarket following the announcement of report publishing by the Wall Street Reporter. However, the last trading session closed at $0.8599 with an increase of 26.83%.

    Wall Street Reporter – What does the report say?

    XELA reported on 1st February 2022 that Wall Street Reporter has published reports regarding the views of the company’s CEO. Developing megatrends and technology are generating trillion-dollar potential for radical technologies in the way people live, work, and play. The latest insights from industry thought leaders affecting society today and in the decade’s future are highlighted by the Wall Street Reporter.

    XELA CEO’s View Point – Report Revealed!

    According to the CEO, Exela is a global leader in BPM technology. At $207 billion and increasing, the total market potential is enormous. Furthermore, in the SMB sector, there are further growth prospects in digital asset groups or DAGs. Moreover, XELA has a strong competitive influence in the market, which is backed up by significant technological investments and several patents. Furthermore, to increase cloud utilization, XELA has developed a strategy. Many of the platforms, such as intelligent data processing and work-from-anywhere initiatives, are propelling rapid cloud adoption.

    By the end of 2022, the executives expect that all customers and workers will have used the cloud. This is an increase from the previous quarter’s 30%. Aside from COVID-19-related revenue concerns, XELA is witnessing excellent momentum across the board. Not only this but in today’s environment, Exela occupies a strong position. A strengthened balance sheet, which includes equity offerings, debt repurchase, and debt refinancing, improved the liquidity position. Exela will take advantage of the rising global TAM, and this has only been possible because of its better financial position and ongoing operational improvements. Last but not the least, he thinks that XELA has the technology, a long history, and a strong staff base to back up the goal for 2022.

  • Exela Technologies Inc. (XELA) Stock Continues Rally on Service Contract Renewal

    On January 25, Exela Technologies Inc. (XELA) announced a service contract renewal with a leading consulting firm. Consequently, the stock added a good value in the following sessions.

    During the regular trading session, XELA stock increased by a huge 32.95% at its close of $0.5500. The stock continued the bullish momentum into the after-hours with a further gain of 7.07%. Therefore, the stock was trading at $0.5889 per share in the after-hours at a heavy volume of 4.74 million shares.

    The transactions processing solutions and enterprise information management provider, Exela Technologies Inc. was founded in 2014. Currently, its 184.83 million outstanding shares trade at a market capitalization of $76.46 million.

    XELA’s Service Contract Renewal

    As per the announcement, the company has renewed its long-standing relationship with a leading consulting firm through contract renewal. Hence, reaffirming a twenty-year-long relationship for a total contract value of more than $35 million.

    Moreover, the suite of solutions provided to the customer includes Digital Mailroom (DMR) and XELA’s Intelligent lockers. For the smooth and uninterrupted mail flow, the company deployed its DMR solution during the early days of the pandemic. With this, the company was able to reroute all customer mail to a processing center. Thus, resulting in the smooth electronic mail flow to the customer’s staff. Resultantly, enabling the smooth transition of the customer’s worldwide employee base to remote working. Currently, the customer’s employee base accounts for over 90,000 users.

    In addition, the company is also providing the reception and exchange of packages like IT laptop exchanges, flexibly.

    Other Developments

    On January 21, the company had announced a new relationship with a post-acute healthcare national leader which focuses on home healthcare. Hospice and personal care. Delivery of data aggregation along with reports for driving patients and families’ agile access to personalized high-quality care is part of the initial PCH Global rollout scope.

    XELA’s Preliminary Q3 Results

    On November 05, the company declared its third-quarter financial results for 2021, which ended on September 30.

    According to the results, the company had a revenue of $279.2 million in the third quarter of 2021. Comparatively, the revenue in Q3 of 2020 was $305.3 million, showing a decrease of 8.5% year over year.

    Furthermore, EXLA incurred a net loss of $13.2 million in the third quarter of 2021, against $28.3 million in Q3 of 2020.

  • How Could This Cause Exela Technologies (XELA) Stock To Rise Premarket?

    How Could This Cause Exela Technologies (XELA) Stock To Rise Premarket?

    In Tuesday’s premarket session, shares of Exela Technologies Inc. (XELA) were trading at $2.82, up 14.63%. At the close of the last trading session, Exela stock was trading at $2.46 with an increase of 1.23%. A total of 25.11 million shares of Exela Technologies were traded on Monday, below the 75.72 million shares traded on average during the last 50 days.

    Over the last one month, the XELA stock has increased 86.36%, while the shares of Exela Technologies have fallen -19.34% over the last five days. XELA stock price has risen 18.27% over the past three months and has gained 97.45 percent so far this year. XELA stock is gaining premarket following record user addition in Q2 2021.

    How did XELA add record-breaking numbers of new users?

    Exela Technologies is a provider of business process automation (BPA) solutions that improve quality, productivity, and end-user experiences. XELA has a global footprint and proprietary technology to deliver smart solutions to organizations worldwide. XELA has over 4,000 customers across 50 countries, including over 60% of the Fortune 100, and has operated mission-critical processes for decades.

    As a leading provider of information management, workflow automation, and integrated communications solutions, XELA brings innovative solutions to industries including banking, healthcare, insurance, and the public sector. XELA’s software and services are industry-specific for banking, healthcare, and insurance.

    Exela announced today that their Digital Mailroom (“DMR”) and DrySign solutions added an unprecedented number of new users during the second quarter of 2021.

    • DMR and Drysign have both grown in the preceding 90 days, with DMR growing by 99% in the SMB customer base and Drysign growing by 144% in the user base.
    • The rapid growth of XELA’s SMB solutions has been a contributing factor to all the positive feedback that it is receiving from its customers.
    • Thousand of new users are joining XELA’s customer base each month and the company is building a marketplace.
    • A new Exela Technologies product, DrySign in India, as well as DMR in the UK, were released during the second quarter as part of its plan to launch into new geographies.
    • It is planned to launch DMR in France and Germany as the next large markets in the third quarter of this year.
    • Exela Technologies continues to develop DAG offerings for SMBs and the international markets it serves.

    How has Exela Technologies grown so rapidly?

    A thriving business opportunity awaits Exela (XELA) with cross-selling, expansion, and new logos coming into fruition through multiple channels. Digital transformation is enabling XELA’s customers to enjoy many benefits as their customer base grows every month. Furthermore, Exela made use of its technology as it continued to roll out additional products for SMBs.

  • Exela Technologies, Inc. (XELA) Stock Continues Rising After Expansion of Product Offerings

    Exela Technologies, Inc. (XELA) Stock Continues Rising After Expansion of Product Offerings

    Exela Technologies, Inc. (XELA) stock prices were up 4.48% shortly after the opening of market trading on July 12th, 2021, bringing the price per share up to USD$3.04.

    Expansion of Offerings

    July 12th, 2021 saw the company announce the expansion of its offering of AI-enabled automation in the BPA space. The company will do this via the combination of its Intelligent Document Processing with its robotic process automation platform. The automation solution will be a frontrunner of the industry and will be deployed in the healthcare and public sector, further consolidating XELA as an industry leader.

    Intelligent Document Processing

    Intelligence Document Processing will enable the automation of document classification, data extraction, and data, made possible by the routing into a cloud or on-premise hosted service portal. This portal can be accessed from anywhere at any time, facilitating the provision of a containerized, dynamically scaling solution.

    Utility of IDP

    The use of the IDP system allows the company to leverage its extensive and growing library of machine learning-based classifiers. These classifiers substantially enhance the automation of document processing in the healthcare and public sector. XELA has plans to increase the scope of its projects in the finance and legal sectors in the short term future. The solution includes a modernized data solution build on the delivery of rule-based, character-level data correction capabilities that serve to drastically reduce the keystrokes required to meet customer service level targets. The IDP manual entry solution allows the company to leverage manual entry operators that can work remotely from anywhere while preserving data security using a proprietary snippet routing engine.

    Combination with EON

    Furthermore, EON will facilitate the automation of simple or complex workflows to usher in efficiency and accuracy gains, while also freeing up human capital to be allocated towards other higher-value uses. The automation platform facilitates the automation of both attended and unattended automation deployments. The company continues to expand its portfolio of solutions to meet the changing requirements of its consumer base, with the latest IDP and EON combination embracing the evolution of work to an accessibility-oriented environment that customers and their employees having been embracing since the onset of the global pandemic.

    Future Outlook of XELA

    The company is poised to capitalize on the opportunities afforded to it in regard to the development of its offerings. With a focus on hasty commercialization and effective proliferation of its products, the company is keen to usher is substantial and sustained increases in shareholder value.

  • Why Did XELA Stock Plummeted Premarket?

    Why Did XELA Stock Plummeted Premarket?

    XELA Technologies Inc. (XELA) shares fell -15.50% to $2.78 in premarket trading. Last trading session, Exela stock gained 22.76% to $3.29. There were 328.21 million shares traded, which far higher than the average daily trading volume of 32.59 million shares over the last 50 days. Over the past 5-day period, XELA stock has lost 40.60%, but over the past month, it has gained 110.90%.

    This year, XELA shares have surged 146.00 percent since the start of the year. During the past three months, the stock price has risen 48.20%. XELA stock is plummeting even after reporting significant boost to cash and cash equivalents as the investors seem to be taking profits after the gain obtained in past session.

    How has XELA improved its liquidity position?

    With a global footprint and proprietary technology, Exela is one of the leading providers of business process automation (BPA) solutions that enhance quality, productivity, and end-user satisfaction. In addition to serving more than 4,000 clients throughout 50 countries, including more than 60% of the Fortune 100, XELA has decades of experience operating mission-critical processes. As a provider of end-to-end digital journey platforms, XELA releases integrated technology and operations in rapid sequence using cloud-based platforms and modules, with a worldwide workforce of more than 18,300 employees.

    It was announced today that Exela’s recently announced $150 million at-the-market equity program raised $85 million of proceeds which significantly improved liquidity position.

    • In accordance with a previously announced strategic initiative, XELA plans to use the proceeds of the equity program to reduce its debt and associated interest expenses as well as investigate ways to invest in its growth.
    • Exela intends to reduce its debt service by $25 million annually as a first step.
    • Retail investors and its shareholders at large have been the largest supporters of the XELA, while the company has been performing well recently.
    • XELA will be able to fund its growth through greater liquidity, helping it to better leverage its technology-enabled business services model.
    • Also, XELA will create significant value for equity holders by reducing its debt service by $25 million annually as it implements its strategic deleveraging.
    • XELA had over $205 million in cash and cash equivalents as of June 30, 2021.
    • As part of its credit facilities, XELA had additional borrowing capacity of $75 million available on case-by-case basis.

    XELA’s plan going forward:

    Exela (XELA) anticipates gaining access to this additional borrowing capacity in the near future, even though its $145 million A/R securitization contains $53 million available for borrowing. On its upcoming 2021 second quarter Financial Results Call, XELA will provide more information on additional steps under the strategic initiative.