Exela Technologies (XELA) is the product of a merger of two historically unprofitable businesses in 2017. The economics of the deal make it unlikely that the company will survive.
XELA started trading on NASDAQ as a blank check company with no business operations. It traded at the book value of its cash assets until it announced an acquisition deal that sent its shares tumbling.
The deal's economic and legal flaws are coming back to haunt shareholders. This calls for a closer look at the merger, debt coverage, and current legal challenges.
The Acquisition Deal
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