Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On November 6, 2024, the Nasdaq Stock Market LLC (“Nasdaq”) notified Exela Technologies, Inc. (the “Company”) that the Nasdaq Hearings Panel (the “Panel”) has determined to delist the Company’s common stock and that trading of the Company’s securities will be suspended at the open of trading on November 8, 2024.
As previously reported, on November 13, 2023, the Nasdaq Listing Qualifications Staff (the “Staff”) notified the Company that it was in violation of Nasdaq Listing Rule 5550(b)(2) (the “MVLS Rule”) because the Company’s Market Value of Listed Securities (“MVLS”) was below the minimum requirement of $35 million for 30 consecutive business days and the Company failed to satisfy any of the alternative requirements set forth in Nasdaq Listing Rule 5550(b).
The Company appeared before the Panel on July 2, 2024. At the hearing, the Company’s senior management and outside advisors outlined the Company’s compliance plan for the Panel, which included the Company’s plans to regain compliance with the requirements set forth in Nasdaq Listing Rule 5550(b). The Panel, after an extension period, granted the Company until November 1, 2024, to regain compliance. As of November 1, 2024, the Company had not regained compliance with the MVLS Rule or any other requirement set forth in Nasdaq Listing Rule 5550(b).
In connection with the Nasdaq delisting notice, Nasdaq will complete the delisting by filing a Form 25 Notification of Delisting with the U.S. Securities and Exchange Commission (the “SEC”) after applicable appeal periods have lapsed. In the interim, the Company’s common stock is expected to begin trading under its current trading symbol “XELA” on the OTC Markets system effective with the open of the markets on November 8, 2024.
The Company has 15 days after the date it received notice of the Panel’s decision (which is November 22, 2024) to request in writing that the Nasdaq Listing and Hearing Review Council (the “Council”) review the decision. In addition, the Council may, on its own motion, determine to review the Panel’s decision within 45 calendar days after the Company was notified of the decision.