Exela cancels vote to effect reverse stock split, shares rise

Exela Technologies

11/04/2022 18:16

** Exela Technologies Inc  XELA.O  climb nearly 18% to $0.42
during market hours on Monday 
    ** The business process automation company says it will not
proceed with the vote scheduled on May 3 to effect a reverse
stock split
    ** A reverse stock split is a corporate action taken by
companies to increase their share prices by consolidating
outstanding shares
    ** Investors often perceive reverse stock split as a sign
that a company is under financial pressure, or at risk of being
delisted
    ** XELA says it might need to seek a reverse stock split to
regain compliance with the listing standard by Aug. 8, 2022
    

 (Reporting by Mehnaz Yasmin in Bengaluru)
 ((Mehnaz.Yasmin@thomsonreuters.com))