Exela Technologies, Inc. (NASDAQ:XELA), a global business process automation leader, announced the retirement of its Special Voting Preferred Stock on Monday. The company, headquartered in Irving, Texas, filed a Certificate of Elimination with the Secretary of State of the State of Delaware on July 26, 2024, effectively retiring all previously redeemed shares of this class of stock.
The move comes as part of the company's efforts to streamline its capital structure. With the filing, all references to the Special Voting Preferred Stock in Exela's Second Amended and Restated Certificate of Incorporation have been eliminated. Consequently, the retired shares have returned to the status of authorized and unissued shares of preferred stock without designation as to series.
This corporate action does not affect the company's Common Stock (XELA) or its 6.00% Series B Cumulative Convertible Perpetual Preferred Stock (XELAP), both of which are listed on The Nasdaq Stock Market LLC.
Exela Technologies, initially known as Quinpario Acquisition Corp. 2 before its name change in September 2014, has a diverse global footprint in the business services sector, classified under the Standard Industrial Classification code 7389, Services-Business Services, NEC.
Investors and stakeholders can find a copy of the Certificate of Elimination attached as Exhibit 3.1 to the Form 8-K filed with the SEC. The company's actions are in compliance with corporate regulatory requirements and reflect its ongoing commitment to corporate governance and shareholder interests.
In other recent news, Exela Technologies, a global business process automation leader, has regained compliance with NASDAQ's listing requirements. The company accomplished this by conducting its combined 2023 and 2024 Annual Meeting of Stockholders, meeting the NASDAQ Listing Rules 5620(a) and 5810(c)(2)(G), and through a strategic spin-off of Exela Technologies BPA, LLC to address the NASDAQ's Minimum Value of Listed Securities (MVLS) Rule.
On the financial front, Exela Technologies reported mixed Q1 2024 results, with a year-over-year revenue decline of 5.4% to $258.8 million. This was partially due to the sale of its high-speed scanner business and the loss of a significant contract. However, the company 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.
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