Freight Technologies Inc. (FRGT) Takes Action to Regain NASDAQ Compliance
HOUSTON, March 23, 2023 (GLOBE NEWSWIRE) -- Freight Technologies, Inc. (Nasdaq: FRGT) (“Fr8Tech''), a technology company offering its custom-developed Fr8App, an industry-leading freight-matching platform powered by AI and machine-learning that offers a real-time portal for B2B cross-border and domestic shipping within the USMCA region, today announces a reverse share split intended to increase the market price per share of the company’s ordinary share and allow Freight Technologies Inc. to bring the company into compliance with Nasdaq’s minimum bid price requirement and maintain its Nasdaq Capital Market listing.
The company confirms that, as previously announced, the board of directors on March 3, 2023, approved a 10:1 reverse split of its ordinary shares, effective on or around March 24, 2023. Freight Technologies Inc.’s ordinary shares will continue to trade on the Nasdaq Capital Market under the symbol “FRGT,” but will trade under a new CUSIP number (G514113113).
Javier Selgas, CEO of Freight Technologies, commented, “Freight Technologies is on a mission to first disrupt then revolutionize cross-border shipping and domestic shipping within the United States-Mexico-Canada (USMCA) region. Maintaining NASDAQ listing is important for both the Company and the shareholders. We anticipate these actions will maintain our NASDAQ listing as evermore shippers and carriers continue to turn to Freight Technologies for our unique streamlined solutions in cross border shipping and logistics.”
As a result of the reverse share split, each 10 pre-split shares of Freight Technologies Inc. shares will automatically combine into one ordinary share without any action on the part of the holder. The number of outstanding ordinary shares following the reverse split will be reduced to 3,271,386. The adjusted capital value of the company, based on shares outstanding as of close of market on March 22, 2023 and a pre-split share price of $0.1676, will be approximately $5.5MM, a 91.6% discount to independent analyst’s target price for the company’s share of $20 on a split adjusted basis and an amount approximating 21% of TTM revenues for the year-ended December 31, 2022 of $25.9 million, also a figure that the company believes to be a significant discount to market comparable shares.
Freight Technologies Inc.’s transfer agent, Transhare Securities Transfer and Registrar, will act as the exchange agent. Additional information concerning the reverse stock split can be found in Freight Technologies Inc.’s Form 6-K filed with the U.S. Securities and Exchange Commission on March 23. 2023.
About Freight Technologies Inc.
Freight Technologies (Nasdaq: FRGT) (“Fr8Tech") is a technology company developing solutions to optimize and automate the supply chain process. Its wholly owned subsidiary Freight App, Inc. (“Fr8App”) is a B2B cross-border shipping marketplace in the USMCA region powered by AI and machine learning. Focused on making shipping transparent and efficient, Fr8App provides carriers with increased growth opportunities and shippers with flexibility, visibility and simplicity for the once-complex process of international over-the-road (“OTR”) shipping. Fr8App uses its proprietary technology platform to connect carriers and shippers and significantly improve matching and operation efficiency via innovative technologies such as live pricing and real-time tracking, digital freight marketplace, broker, transportation management, fleet management and committed capacity solutions. The company is headquartered in Houston, Texas.
For more information, please visit: www.fr8technologies.com
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Freight Technologies' and Fr8App’s actual results may differ from their expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, Freight Technologies’ and Fr8App’s expectations with respect to future performance and anticipated financial impacts of its acquisition of Fr8App.
These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside Freight Technologies’ and Fr8App’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the impact of the COVID-19 pandemic on Fr8App’s business; (2) the inability to obtain or maintain the listing of Freight Technologies’ ordinary shares on Nasdaq; (3) the ability to recognize the anticipated benefits of the merger, which may be affected by, among other things, competition and the ability of Fr8App to grow, manage growth profitably and retain its key employees; (4) costs related to the merger; (5) changes in applicable laws or regulations; (6) the possibility that Freight Technologies or Fr8App may be adversely affected by other economic, business and/or competitive factors; (7) risks relating to the uncertainty of the projected financial information with respect to Fr8App; (8) risks related to the organic and inorganic growth of Fr8App’s business and the timing of expected business milestones; and (9) other risks and uncertainties identified, including those under “Risk Factors,” to be filed in Freight Technologies' other filings with the SEC. Freight Technologies cautions that the foregoing list of factors is not exclusive. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Freight Technologies and Fr8App caution readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Freight Technologies and Fr8App do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based.
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