Small cap business process automation company Exela Technologies XELA could have a new plan to appeal to retail traders.
What Happened: Business process automation leader Exela Technologies saw shares rise in the last month before a 1-for-20 split happened Tuesday.
The company announced recently it received an acquisition proposal for one of its units that has revenue of $200 million. Exela said it was in active discussions with several parties about additional acquisition proposals.
The announcement of the acquisition proposal came after the company announced in June it could pursue a sale process for several standalone assets.
The company announced in June an exchange for bills and payments (XBP) contract with a total value of $136 million.
In July, the company may have attempted to appeal to a new section of the investing crowd: the Apes.
Apes often refers to retail traders who were labeled dumb money by Wall Street and can also refer to investors in heavily shorted stocks like AMC Entertainment Holdings AMC and GameStop Corp GME once were.
Exela announced recently it partnered with the Dian Fossey Gorilla Fund. The company is donating money to the gorilla themed organization and also using the hashtags #WeAreAllApes and #ApeNation in social media posts and on some merchandise.
The company is selling branded #ApeNation items like tank tops, hats, shorts and t-shirts.
Related Link: AMC, GameStop And The Apes: Matt Kohrs Joins 'Power Hour' To Talk About How We Arrived Here
Why It’s Important: Exela is a leader in the business process automation segment and also operates intelligent workplace systems.
The company serves over 4,000 customers in 50 countries and serves 60% of the Fortune 100 companies.
A reddit post titled “Mega DD and Value Analysis” has gotten some attention from retail traders on Exela. The combination of the interest from Reddit, appealing to Apes and rising short interest could be the combination that get investors excited about the stock moving forward.
XELA Price Action: Shares of Exela Technologies were down 36% to $1.85 on Tuesday.
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