Exela Technologies, Inc. (NASDAQ:XELA), a global business process automation leader, announced today that it has regained compliance with NASDAQ's listing requirements.
The Irving, Texas-based company received a notification from NASDAQ on June 20, 2024, confirming that it had successfully conducted its combined 2023 and 2024 Annual Meeting of Stockholders on June 13, 2024, thereby meeting the NASDAQ Listing Rules 5620(a) and 5810(c)(2)(G), which mandate the holding of an annual shareholder meeting within twelve months of the fiscal year-end.
The company had previously been out of compliance with the NASDAQ's Minimum Value of Listed Securities (MVLS) Rule, which requires a minimum MVLS of $35 million. To address this, Exela Technologies submitted a compliance plan on July 2, 2024, which included a strategic spin-off of Exela Technologies BPA, LLC.
The plan aimed to increase the company's stockholders' equity to over $2.5 million on a post-spinoff adjusted basis, thereby satisfying NASDAQ's Minimum Equity Requirement. NASDAQ granted Exela Technologies an extension until November 1, 2024, to demonstrate compliance, subject to the company achieving certain interim milestones.
The company's shares are traded on The Nasdaq Stock Market LLC under the ticker symbols XELA for its common stock and XELAP for its 6.00% Series B Cumulative Convertible Perpetual Preferred Stock. Exela Technologies has its principal executive offices located in Irving, Texas.
Investors have been monitoring the company's progress closely, as maintaining NASDAQ listing status is crucial for ensuring broad market access and liquidity for Exela's shares. The successful compliance with NASDAQ rules is a key step in the company's ongoing efforts to maintain transparency and adhere to market regulations.
This report is based on a press release statement.
In other recent news, Exela Technologies, a global business process automation leader, announced mixed Q1 2024 results. The company reported a year-over-year revenue decline of 5.4% to $258.8 million, partially due to the sale of its high-speed scanner business and the loss of a significant contract.
Despite the revenue decrease, Exela Technologies experienced gross margin improvements and a substantial reduction in net loss, primarily due to lower interest and debt expenses. The company's net loss stood at $25.6 million, a $20 million improvement from the previous year, and adjusted EBITDA was reported at $12.9 million.
Amid these developments, Exela Technologies continues to focus on revenue stabilization, margin improvement, and strategic growth initiatives for 2024. Management remains optimistic about achieving its objectives for the year, with a particular emphasis on profitability and liquidity.
These are the recent developments that have been unfolding at Exela Technologies.
InvestingPro Insights
As Exela Technologies, Inc. (NASDAQ:XELA) navigates the compliance landscape of NASDAQ listing requirements, investors may find additional insights through InvestingPro's real-time data and analytics. Currently, Exela Technologies holds a market capitalization of $15.85 million, indicating its relatively small size within the market. Despite regaining compliance, the company's financials reflect challenges; notably, a negative P/E ratio of -0.13 for the last twelve months as of Q1 2024 suggests that it is not currently profitable. This is further evidenced by a revenue decline of 2.06% during the same period.
InvestingPro Tips also highlight the volatility in Exela's stock price, with significant declines over the past year and five years, yet a strong return over the last month and three months. This could signal a potential turnaround or a short-term positive trend in investor sentiment. Additionally, the company's short-term obligations exceeding liquid assets, and trading at a high EBIT valuation multiple, may warrant caution for potential investors.
For those interested in a deeper analysis, InvestingPro offers additional tips on Exela Technologies, which can be accessed at https://www.investing.com/pro/XELA. To enhance your investment research, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With a total of 10 InvestingPro Tips available, investors can gain a comprehensive understanding of the company's financial health and market position.
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