Q: What was announced on October 10, 2022?
A: Exela and CF Acquisition Corp. VIII announced the next stage in the public listing of Exela’s European business, called XBP Europe. The press release is listed here, https://investors.exelatech.com/news-releases/news-release-details/exela-technologies-incs-european-business-go-public-through
Q: What will XELA holders receive when the transaction closes?
A: Exela’s subsidiary, the seller, will receive shares of the standalone public company for its shares of XBP Europe. The enterprise value of XBP Europe at today’s valuation is approximately $220 million. XBP Europe currently generates ~$200 million in revenue annually. More details can be found here, http://exelatechnologies.gcs-web.com/static-files/7a68cfc1-fec6-4ba1-a748-becbb83ab336
Q: Who will own the publicly traded entity?
A: Exela will indirectly own the vast majority of the shares in the entity which will be publicly listed on the Nasdaq.
Q: Why are you taking XBP Europe public?
A: We believe that Exela is undervalued and expect this transaction to benefit Exela shareholders to help realize some of the real value of Exela.
Q: When will we learn more about the transaction?
A: We will provide updates as we make progress per guidelines mandated by the SEC.
Q: Will the new combined company have debt?
A: While we don’t have specifics until the close of the transaction. we expect the new combined company to have cash, some debt and working capital lines used for the growth of business.
Q: Will Exela Technologies Inc. receive cash in this transaction?
A: Exela’s subsidiary will receive shares in this transaction and we will provide further plans for these shares as information becomes available.