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Thursday, May 19, 2022

Exela Technologies Inc. (XELA) stock Is Rising in Pre-Market Today- What is Driving It Higher?

Exela Technologies Inc. (XELA) is currently on the rise in the premarket after announcing a share buyback program. XELA stock is currently trading at $0.42, gaining more than 20.14% from the previous close. XELA stock closed at $0.35 at the end of the last trading session with a trading volume of 42.08 million shares.


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The Global Software Products Industry Overview

Exela Technologies, Inc. (XELA) is software services providing company that aims to automate businesses with its software solutions. Their data-driven technology and expertise help businesses achieve better results and track down their performance.

It is estimated that in 2021, the global software products business will have a market value of about $1.14 trillion in 2021. Experts believe it will be worth $1.3 trillion by 2022. It is expected to grow at a rate of 14.6 percent per year. In 2026, researchers predict that the global market for software products will be valued at around $2.15 trillion, rising at a compound annual growth rate of 13.3 percent over the next years.

Since the emergence of covid-19 and, more recently, the Russian invasion of Ukraine, the need for security services has increased considerably due to cybersecurity threats. SaaS solutions are also available from the company. As a result of the covid-19 epidemic, remote working has increased, which has made it more difficult to run the business. Consequently, the demand for SaaS solutions has skyrocketed in the business.

XELA: Shares Repurchase Program

Exela Technologies today announced a shares repurchase program. One hundred million shares could be exchanged, valuing at $125 million liquidation preference of its 6% Series B1 Preferred Stock.

Shareholders may swap 20 common shares for a $25 liquidation preference, 6% cumulative dividend, convertible preferred stock with voting rights. This is a 257 percent premium over the $0.35 closing share price on April 15, 2022. A total of 20.6 percent of its shares will be redeemed.

Those who own shares of Series B Preferred Stock will also be able to exchange their shares for an equal number of shares of the new preferred stock and a cash payment for any dividends that have not been paid yet.

The promotion expires at 11:59 p.m. on May 16, 2022. The deadline for instructing a broker or nominee to tender for shareholders who hold their shares directly maybe sooner. Shareholders must comply with their broker or nominee’s requirements and timeframes.

Conclusion

The company must meet the NASDAQ compliance of keeping the share price above $1. As a result, the company initiated the share buyback strategy to help the XELA stock rise above the lowest price of $1 per share.

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