Summary by Futu AI
On November 19 and 21, 2024, Exela Technologies executed a significant stock exchange transaction where certain holders of Series A Perpetual Convertible Preferred Stock exchanged 1,525,666 shares for 21,385,694 common shares at $1.18 per share. The exchange was based on the accumulated liquidation preference of the Series A Preferred Stock.The transaction was overseen by a Special Committee of independent directors, given that some holders were affiliated with company directors and executives. The committee relied on analysis from an independent financial advisor to ensure fair valuation. Following the exchange, Series A Preferred Stock outstanding decreased from 2,778,111 to 1,252,445 shares, while Common Stock increased from 6,365,363 to 27,751,057 shares.This development follows the company's recent delisting from Nasdaq on November 8, 2024, after which both its Common Stock and Series B Cumulative Convertible Perpetual Preferred Stock began trading on the over-the-counter market under the symbols "XELA" and "XELAP" respectively.
