Exela Technologies Announces $26.8 Million Private Placement
March 15 2021 - 11:22PM
Exela Technologies, Inc. (“Exela” or “Company”) (NASDAQ: XELA), a
location-agnostic global business process automation (BPA) leader,
announced that it has entered into securities purchase agreements
and warrant agreements with institutional investors for the
purchase and sale of 9,731,819 shares of common stock at a price of
$2.75 per share and warrants to purchase 9,731,819 shares of common
stock at an exercise price of $4.00 per share. The warrants will be
exercisable beginning on the calendar date following the six month
anniversary of the date of issuance and will expire five years from
the date when first exercisable. The gross proceeds to Exela from
this offering are expected to be approximately $26.8 million before
deducting placement agent fees and other estimated offering
expenses. The offering is expected to close on or about March 18,
2021, subject to customary closing conditions.
Cantor Fitzgerald & Co acted as sole placement agent for the
offering.
The securities offered in the private placement
have not been registered under the Securities Act of 1933, as
amended, or applicable under state securities laws. Accordingly,
the securities may not be offered or sold in the United States
except pursuant to an effective registration statement or an
applicable exemption from the registration requirements of the
Securities Act and such applicable state securities laws. As part
of the transaction, the Company has agreed to file a resale
registration statement on Form S-3 with the Securities and Exchange
Commission by May 3, 2021 to register the resale of the shares of
common stock and shares of common stock underlying the warrants
issued in the private placement.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of these securities in any state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
state or jurisdiction.
About Exela
Exela Technologies, Inc. (Nasdaq: XELA) is a
business process automation (BPA) leader, leveraging a global
footprint and proprietary technology to provide digital
transformation solutions enhancing quality, productivity, and
end-user experience. With decades of expertise operating
mission-critical processes, Exela serves a growing roster of more
than 4,000 customers throughout 50 countries, including over 60% of
the Fortune® 100. With foundational technologies spanning
information management, workflow automation, and integrated
communications, Exela’s software and services include
multi-industry department solution suites addressing finance and
accounting, human capital management, and legal management, as well
as industry-specific solutions for banking, healthcare, insurance,
and public sectors. Through cloud-enabled platforms, built on a
configurable stack of automation modules, and over 21,000 employees
operating in 23 countries, Exela rapidly deploys integrated
technology and operations as an end-to-end digital journey
partner.
Forward-looking Statement
Certain statements included in this press
release are not historical facts but are forward-looking statements
for purposes of the safe harbor provisions under The Private
Securities Litigation Reform Act of 1995. Forward-looking
statements generally are accompanied by words such as "may",
"should", "would", "plan", "intend", "anticipate", "believe",
"estimate", "predict", "potential", "seem", "seek", "continue",
"future", "will", "expect", "outlook" or other similar words,
phrases or expressions. These forward-looking statements include
statements regarding the expected closing of the offering, our
industry, future events, estimated or anticipated future results
and benefits, future opportunities for Exela, and other statements
that are not historical facts. These statements are based on the
current expectations of Exela management and are not predictions of
actual performance. These statements are subject to a number of
risks and uncertainties, including without limitation those
discussed under the heading "Risk Factors" in Exela's Annual Report
and other securities filings. In addition, forward-looking
statements provide Exela's expectations, plans or forecasts of
future events and views as of the date of this communication. Exela
anticipates that subsequent events and developments will cause
Exela's assessments to change. These forward-looking statements
should not be relied upon as representing Exela's assessments as of
any date subsequent to the date of this press release.
Investor and/or Media Contacts:Vincent KondaveetiE:
vincent.kondaveeti@exelatech.comT: 929-620-1849
Mary Beth BenjaminE: IR@exelatech.comT: 646-277-1216
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