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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): December 31, 2021

 

EXELA TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

 

Delaware   001-36788   47-1347291

(State or other jurisdiction of
incorporation or organization)

  (Commission File Number)  

(I.R.S. Employer

Identification Number)

 

2701 E. Grauwyler Rd.

Irving, TX

  75061
(Address of principal executive offices)   (Zip Code)

 

Company’s telephone number, including area code: (844) 935-2832

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class   Trading Symbol   Name of Each Exchange on Which Registered
Common Stock, Par Value $0.0001 per share   XELA   The Nasdaq Stock Market LLC

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation to the registrant under any of the following provisions:

 

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

 

¨Emerging growth company

 

¨If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 

 

 

8.01 Other Events.

 

On December 31, 2021, Exela Technologies, Inc. (the “Company”) reached an agreement to settle the appraisal action case described under Item 1. Legal Proceedings in its most recent Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021 (filed with the Securities Exchange Commission on November 8, 2021), together with all related cases filed by the appraisal petitioners seeking to enforce the appraisal judgment and other claims relating to their investment in the Company’s subsidiary, SourceHOV Holdings, Inc.

 

Under the terms of the settlement, the Company's subsidiary agreed to pay or cause to be paid to the appraisal petitioners $63.4 million, plus interest, consisting of cash and cash equivalents with payments expected to be completed by April 15, 2022. The settlement provides for the full release of all parties upon receipt of the payments and subject to customary conditions.

 

Management believes this settlement is in the best interests of the Company, as, among other things, it enables the Company to settle the payment of the appraisal litigation and focus on its business.

 

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SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: January 4, 2022

 

  EXELA TECHNOLOGIES, INC.
     
  By: /s/ Erik Mengwall
    Name: Erik Mengwall
    Title: Secretary

 

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