Exela Technologies Inc (NASDAQ: XELA) has been on the move in recent days moving up over its $0.05 base and 52-week lows of $0.04 to hit $0.08 on Friday Morning. XELA has seen a massive collapse over the past 2 years from over $60 per share in 2021. The stock has seen steady declines after the most recently released quarterly financial report shows declining revenues, dwindling cash and a growing loss per share. The Company also failed to make interest payments on some of their senior secured notes and generally speaking the Company has turned into a fiscal failure, now with a Nasdaq delisting hanging over its head. 

But at $0.06 and a market valuation of less than $10 million XELA is starting to attract buyers much to the chagrin of the significant short position in the stock. There are catalysts at play including next week’s earnings announcement, European SPAC merger, dividend for shareholders, which assets will be sold to raise cash and the Nasdaq update. XELA Is highly liquid and highly volatile here as well trading close to a billion shares on the last two trading days of last week. We will be updating on XELA when more details emerge so make sure you are subscribed to newsytrends.com by entering your email below. 

Exela Technologies Inc (NASDAQ: XELA) is a business process automation (BPA) leader, leveraging a global footprint and proprietary technology to provide digital transformation solutions that improve efficiency, quality, and productivity. With decades of experience operating mission-critical processes, Exela serves a growing roster of more than 4,000 customers throughout 50 countries, including over 60% of the Fortune® 100. Exela provides an intuitive and fully customizable RPA solution that can be leveraged to create task-specific software bots that deploy best practices using big data, machine learning, artificial intelligence, natural language processing, and predictive analysis. The solution is a component of Exela’s Exchange for Bills and Payments (“XBP”) portfolio within the Information and Transaction Processing Solutions (“ITPS”) accounting segment, which generated $874.2 million in revenue for FY 2021. 

With foundational technologies spanning information management, workflow automation, and integrated communications, Exela’s software and services include multi-industry solution suites addressing finance & accounting, human capital management, facilities optimization, and legal management, as well as industry-specific solutions for banking, healthcare, insurance, and the public sector. Exela is a leader in workflow automation, attended and unattended cognitive automation, digital mailrooms, print communications, and payment processing, with deployments across the globe. Through cloud-enabled platforms, built on a configurable stack of automation modules, and approximately 16,500 employees operating in 21 countries, Exela rapidly deploys integrated technology and operations as an end-to-end digital journey partner. 

In November XELA announced financial results for the third quarter ended September 30, 2022. The Company reported revenue of $264 million, a decline of 5.4% from Q3 2021 and a net loss of $85 million. The Company did make some big accomplishments during the quarter including its european business signing a deal to go public through a merger with CF Acquisition Corp. VIII based on a $220 million valuation. Won $87M TCV(1) in Q3; record YTD in new business wins. Small-and-Medium-Sized Business (“SMB”) continues strong growth with DMR(2) customers growing 227% and DrySign® users growing 1,244% over Q3 2021.

I like the stock $XELA pic.twitter.com/CLHOUzDXUd

— Moon Ventures 🌙 (@partin_levi) February 27, 2023

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Recently XERA announced a partnership with Quintes Global (“QG”), an innovative company with a differentiated first-of-its-kind offering of ‘Dedicated Captive Solutions’ headquartered in New Delhi, India. Exela will deploy its cloud-based Robotic Process Automation (“RPA”) solution, to enable end-to-end digitization of processes performed by QG for its customers under the unique Dedicated Captive Model. The Company was also recently recognized as a ‘Major Player’ in the IDC MarketScape for U.S. RCM Service Solutions 2022-2023 Vendor Assessment. The report describes Exela’s strength in Delivery Models and Workflow Automation. It describes the combination of robust end-to-end RCM capabilities, subject matter expertise, and innovation as a key strength that has allowed Exela Technologies to consistently deliver its services for over 30 years and with high customer satisfaction. 

On March 2 XELA announced its subsidiaries had obtained $51 million of new funding from B. Riley Commercial Capital, LLC (“BRCC”) and an affiliate of BRCC through a combination of an amendment of the Company’s existing $150 million PNC securitization facility to permit the addition of $35 million of junior secured financing, a separate sale of receivables, and an increase in availability under a revolving line of credit. The new securitization facility matures in June 2025 and bears interest at a per annum rate of one-month Term SOFR plus 7.5%. 

These financings provided an additional $51 million of funding in February with an additional $4 million available subject to certain financial measurements. In connection with these transactions, a subsidiary of Exela prepaid $29 million of its existing BRCC term loan, reducing the outstanding term loan balance to approximately $15 million. The Company plans to use the incremental liquidity for general corporate purposes, debt obligations and transaction expenses. 

The Company also announced it had purchased $13.4 million of 2023 unsecured Notes in accordance with its previously announced capital deployment strategy. Combined with the $29 million reduction of BRCC term loan, the prepayment and purchase resulted in reducing 2023 maturities on a consolidated basis by $42.4 million. 

$XELA 0.0686 classic reversal expected here 6m/1d ,4d/15min pic.twitter.com/0qLfpJoSzG

— Vish (@Vish_Thamma) March 4, 2023

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Currently trading at a $8 million market valuation XELA os is 122,201,119 issued and outstanding; in a cash crunch the Company was recently able to secure an additional $51 million of funding in February with an additional $4 million available subject to certain financial measurements. The stock has seen steady declines after the most recently released quarterly financial report shows declining revenues, dwindling cash and a growing loss per share. The Company also failed to make interest payments on some of their senior secured notes and generally speaking the Company has turned into a fiscal failure, now with a Nasdaq delisting hanging over its head. But at $0.06 and a market valuation of less than $10 million XELA is starting to attract buyers much to the chagrin of the significant short position in the stock. There are catalysts at play including next week’s earnings announcement, European SPAC merger, dividend for shareholders, which assets will be sold to raise cash and the Nasdaq update. We will be updating on XELA when more details emerge so make sure you are subscribed to Newsytrends.com by entering your email below. 

Disclosure: we hold no position in XELA either long or short and we have not been compensated for this article.