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      Why Did XELA Stock Plummeted Premarket? - Stocks Telegraph

      By ST Staff

      Published on

      July 8, 2021

      10:07 AM UTC

      Last Updated on

      July 14, 2021

      7:13 AM UTC

      Why Did XELA Stock Plummeted Premarket? - Stocks Telegraph

      XELA Technologies Inc. (XELA) shares fell -15.50% to $2.78 in premarket trading. Last trading session, Exela stock gained 22.76% to $3.29. There were 328.21 million shares traded, which far higher than the average daily trading volume of 32.59 million shares over the last 50 days. Over the past 5-day period, XELA stock has lost 40.60%, but over the past month, it has gained 110.90%.

      This year, XELA shares have surged 146.00 percent since the start of the year. During the past three months, the stock price has risen 48.20%. XELA stock is plummeting even after reporting significant boost to cash and cash equivalents as the investors seem to be taking profits after the gain obtained in past session.

      How has XELA improved its liquidity position?

      With a global footprint and proprietary technology, Exela is one of the leading providers of business process automation (BPA) solutions that enhance quality, productivity, and end-user satisfaction. In addition to serving more than 4,000 clients throughout 50 countries, including more than 60% of the Fortune 100, XELA has decades of experience operating mission-critical processes. As a provider of end-to-end digital journey platforms, XELA releases integrated technology and operations in rapid sequence using cloud-based platforms and modules, with a worldwide workforce of more than 18,300 employees.

      It was announced today that Exela’s recently announced $150 million at-the-market equity program raised $85 million of proceeds which significantly improved liquidity position.

      • In accordance with a previously announced strategic initiative, XELA plans to use the proceeds of the equity program to reduce its debt and associated interest expenses as well as investigate ways to invest in its growth.
      • Exela intends to reduce its debt service by $25 million annually as a first step.
      • Retail investors and its shareholders at large have been the largest supporters of the XELA, while the company has been performing well recently.
      • XELA will be able to fund its growth through greater liquidity, helping it to better leverage its technology-enabled business services model.
      • Also, XELA will create significant value for equity holders by reducing its debt service by $25 million annually as it implements its strategic deleveraging.
      • XELA had over $205 million in cash and cash equivalents as of June 30, 2021.
      • As part of its credit facilities, XELA had additional borrowing capacity of $75 million available on case-by-case basis.

      XELA’s plan going forward:

      Exela (XELA) anticipates gaining access to this additional borrowing capacity in the near future, even though its $145 million A/R securitization contains $53 million available for borrowing. On its upcoming 2021 second quarter Financial Results Call, XELA will provide more information on additional steps under the strategic initiative.

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