Exela Technologies Inc. (NASDAQ: XELA) continued racking gains, and on Friday, the stock jumped 3.93%. XELA was trading on high volume, with around 178.5 million shares exchanging hands more than the average daily trading volume of 34.36 million. The stock has been touted in various sub-Reddits, which have pushed the stock up. Since the start of January 2019, XELA shares have not moved above the $10 mark.
Court dismisses federal securities suit against Exela
On June 25, 2021, a Texas court ruled in the company’s favor by dismissing a class action lawsuit. Judge Sydney A. Fitzwater granted the company’s motion of dismissing the federal securities class action in its entirety.
At the beginning of June, the company announced an expansion and extension of its partnership with a specialty services insurance provider. In Q1 2021, Exela reported revenue of $300.1 million and a net loss of $39.2 million, and it expects full-year revenue to be between $1.25 billion and $1.39 billion.
Exela completes 100 million at the equity securities offering.
At the end of June, the company announced a $100M completion at the market equity program. In addition to the program, the company entered another $150M at the equity market equity. The offering’s net proceeds will be used in purchasing or retiring debt and general corporate purposes that include sales & marketing and commercial planning, development programs funding, licensing or acquisition of product candidates, and general administrative expenses.
The company is offering the securities according to a shelf registration statement on Form S-3, initially filed with the SEC on May 3, 2021, and the SEC declared effective on May 12, 2021. Notably, the securities offering will be through a prospectus and prospectus supplement. Investors can access a prospectus supplement and prospectus copy relating to the securities from the SEC website.