Exela Technologies Announces Successful Completion of Exchange Offer for Shares of Common Stock
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 6.00% Series B Cumulative Convertible Perpetual Preferred Stock (the “Series B Preferred Stock”), with each 20 shares of Common Stock being exchanged for one share of Series B Preferred Stock having a liquidation preference of $25.00 per share (the “Offer”).
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Stock (excluding shares tendered pursuant to guaranteed delivery procedures) were validly tendered for exchange and not withdrawn as of the Expiration Date.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 wih 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.
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