XELA stock is continuing to trend higher on February 2, 2022, after the company announced last week that it would buyback 100 million shares.
Exela Technologies Announces Share Buyback of up to 100 Million Shares of Common Stock at $1 per Share Through Exchange Offer of New Notes
On January 26, 2022, Exela Technologies (NASDAQ: XELA), announced that it has commenced an offer (the “Offer”) to holders of Exela’s outstanding shares of common stock (the “Common Stock”), to exchange up to 100,000,000 shares of Common Stock for up to $100,000,000 aggregate principal amount of its unsecured 6.00% senior notes due 2029 (the “New Notes”). The Offer is being made pursuant the exemption from the registration requirements of the Securities Act of 1933 contained in Section 3(a)(9) for the New Notes. Under that exemption, if Common Stock tendered is freely tradable, the New Notes received in the exchange will be freely tradable. If the Common Stock tendered in the exchange is restricted, the New Notes will be restricted to the same degree. The Offer is being made pursuant to the terms and subject to the conditions set forth in the Offer to Exchange dated January 26, 2022, as may be amended or supplemented in accordance with the terms thereof.
Par Chadha, Exela’s Executive Chairman, noted, “After deploying more than $400 million of capital in 2021 to substantially reduce debt and extend maturities, we are now deploying capital to unlock shareholder value for our large and growing shareholder base.”
Holders of Common Stock who validly tender on or prior to 11:59 p.m., New York City time, on February 24, 2022 (unless extended, the “Expiration Date”), will receive for each 25 shares of Common Stock tendered, a New Note having a principal amount equal to $25.00. In the event that a number of shares of Common Stock is tendered in the Offer that would require the Company to issue in excess of $100,000,000 aggregate principal amount of New Notes, then all tenders will be accepted on a pro rata basis such that the aggregate principal amount of the New Notes does not exceed $100,000,000.
Shareholders who hold their shares through a brokerage firm (e.g., Schwab, TD Ameritrade, Fidelity, Robinhood, etc.), should contact their brokerage firm and follow the brokerage firm’s procedures for instructing the broker to tender shares of Common Stock. Because it may take some time for the broker to process instructions, shareholders should contact their broker far enough in advance of the Expiration Date to enable the broker to timely follow the tender instructions.
Consummation of the Offer is subject to the satisfaction or waiver of certain conditions; however, there is no minimum number of shares of Common Stock that must be tendered in the Offer. Exela reserves the right, in its sole discretion, to waive or modify any one or more of the conditions to the Offer.
The New Notes will accrue interest at the rate of 6.00%, and will mature on March 31, 2029.
Exela intends to apply to list the New Notes on either the NYSE American Exchange or Nasdaq under the symbol “XELAA.” If this application is approved, trading in the New Notes is expected to commence within a 30-day period after the approval of listing. Until such time, the New Notes will trade on the OTC.
Exela Technologies renews long standing relationship with consulting firm
On January 25, 2022, Exela Technologies announced a renewal of its services contract with a leading consulting firm. The renewal reaffirms a 20-year relationship. The total contract value is over $35M. Digital Mailroom, DMR, and Exela’s Intelligent lockers are a component of the broader suite of solutions provided to the customer.
Exela announces new relationship with hospice, home healthcare company
On January 21, 2022, Exela Technologies announced a new relationship with a national leader in post-acute healthcare focusing on home healthcare, hospice and personal care. The initial scope of the PCH Global rollout will deliver data aggregation and reporting to drive easier access to personalized high-quality care for patients and their families. Exela continues to invest in expanding PCH Global’s capabilities to provide a cloud hosted solution. “This marks another milestone in the value proposition of the PCH Global platform to digitally connect members, providers and insurance companies to enable clean claims, payment transparency and digital appeals,” the company said.
Exela Technologies expands partnership with global bank
On January 20, 2022, Exela Technologies announced Exela has expanded a contract with a top global bank. Exela has augmented the service offering to the bank which currently includes payment clearing, case management, payment fraud detection and mortgage payments. The expansion includes foreign payment processing, which is subject to complex international rules and regulations.
Exela Technologies expands relationship with large technology provider
On January 18, 2022, Exela Technologies announced it has augmented an existing relationship with a large technology services provider for several Medicaid programs across the nation. The initial component of the expansion is valued in excess of $2.5M. This deployment builds on a 25-year partnership and leverages Exela’s PCH Global platform. PCH Global deployment will connect providers, Medicaid agencies and members to help drive clean claims and significantly reduce the need for retrospective collections. “Exela continues to invest in increasing PCH Global’s capabilities to provide a cloud hosted solution with one of the best edit resolutions for healthcare claims,” the company said. This extension of deployment marks another milestone in the value proposition of the PCH Global platform to digitally connect members, providers and insurance companies to enable clean claims, payment transparency and digital appeals.
Exela Expands Mastercard Relationship in Europe
On January 12, 2022, Exela Technologies announced it has expanded an existing relationship with Mastercard in the EMEA region to support the automation of Giro payments and processing in Norway utilizing Exela’s XBP platform.
Exela will develop and deploy a new, innovative solution using optical/intelligent character reading to automate the content extraction of payment documents in the Brevgiro service in Norway. As part of this solution Exela will also provide automated signature verification of payment transactions. This solution will be used to process over 11 million Giro payments in Norway.
“We are proud to continue developing our partnership with Mastercard and look forward to servicing the entire Norwegian Giro payments market,” said Vitalie Robu, president of Exela EMEA, adding “this solution is part of our global XBP rollout.”
📺🧨💥 This Will Explode! Exela Technologies XELA Stock Announces Share Buyback
📉 XELA Stock Technical Analysis
The short-term trend is neutral, while the long-term trend is still negative. Large players volume is exploding higher which is very bullish. We need to see a little more continued positive action to make this stock a turnaround candidate. XELA is one of the lesser performing stocks in the IT Services industry. 80% of 153 stocks in the same industry do better. XELA is currently trading near the lower end of its 52-week range, which is not a good sign. The S&P500 Index is trading in the upper part of its 52-week range, so XELA is lagging the market. Volume is considerably higher in the last couple of days, which is what you like to see during a strong movement up.
There is resistance at 1.16 from a trend line in the daily time frame. There is resistance at 1.70 from a trend line in the daily time frame. Finally, there is resistance at 2.08 from a horizontal line in the daily time frame.
The technical rating of XELA is bad and it also does not present a quality setup at the moment. XELA stock has a Setup Rating of 2 out of 10. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when XELA stock consolidates and has a Setup Rating of 8 or higher.