Exela Technologies (NASDAQ:XELA) stock is sinking 8% in early trading after the company carried out a reverse split on Friday after the market close. The shares tumbled 18.3% on Friday to 2.5 cents.
Exela develops and markets process automation software that enhances “finance & accounting, human capital management … and legal management.” XELA stock has often been a meme name in the past.
Exela carried out a 1-for-200 reverse split on Friday. In the wake of the split, XELA stock was changing hands for $4.43 each in pre-market trading earlier this morning. Following the split, there are about 6.4 million shares of XELA stock “issued and outstanding,” the company noted.
Additional Information About Exela
In March, the company disclosed that it had obtained $51 million of additional credit from investment bank B. Riley (NASDAQ:RILY). Following the deal, Exela’s “existing securitization facility” reached $185 million.
As of the end of last year, XELA had just $9.9 million of cash and short-term investments, but it reported having $136.7 million of current debt and $146.2 million of accrued expenses.
In 2022, the company generated revenue of $1.077 billion, net income of -$415.6 million, and EBITDA of $13.1 million. Its operations burned $87.2 million of cash last year.
On May 11, it reported that its top line had dropped 2.1% year-over-year to $273.6 million in the first quarter, while its EBITDA, excluding certain items, had come in at $34.7 million in Q1. However, it generated an operating loss of $7.3 million.
According to Seeking Alpha, XELA stock has a market capitalization of $6.37 billion, putting its trailing price-to-sales (P/S) ratio at a very high 6.22.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
