Freight Technologies announces reverse stock split

HOUSTON - Freight Technologies, Inc. (NASDAQ:FRGT), known as Fr8Tech, a company specializing in logistics management and technology solutions with a market capitalization of $6.5 million, has announced a one-for-four reverse stock split of its ordinary shares. The announcement comes as the company’s stock has declined over 94% in the past year, according to InvestingPro data. The reverse split is set to take effect on May 27, 2025, on the Nasdaq Capital Market, where Fr8Tech’s shares will continue trading under the ticker FRGT but with a new CUSIP number: G51413147. InvestingPro analysis indicates the company is currently undervalued, though investors should note that the company is quickly burning through cash and faces significant financial challenges.

Shareholders will see every four pre-split shares automatically combined into one new share. Consequently, the number of outstanding shares will decrease from approximately 9.1 million to about 2.2 million. The reverse split will not affect the total number of authorized shares or any shares issuable under outstanding options and warrants.

The company has stated that no fractional shares will be issued. Shareholders who would have received a fractional share will either be rounded up to the next whole share if their fractional share is less than one-half or have the fractional share cancelled if it is equal to less than one-half. Transhare Corporation will act as the exchange agent for the reverse split.

Freight Technologies operates with a focus on leveraging artificial intelligence and machine learning to enhance supply chain processes. Its portfolio includes platforms like Fr8App for over-the-road (OTR) B2B cross-border shipping, Fr8Now for less-than-truckload shipping, and other solutions catering to different facets of the logistics and transportation industry. The company generated revenues of $13.5 million in the last twelve months, though it faces profitability challenges with a negative gross profit margin of 26%. InvestingPro subscribers have access to 11 additional key insights about FRGT’s financial health and market position.

The company’s announcement is based on a press release statement and should be considered in light of the usual risks and uncertainties associated with such corporate actions. It is important for investors to note that forward-looking statements are not guarantees of future performance, and actual results could differ materially from those projected.

In other recent news, Freight Technologies, Inc. has made significant strides in both financial and operational aspects. The company announced the acquisition of $5.2 million in FET Tokens from Fetch Compute, Inc., marking an expansion into the decentralized AI ecosystem. This strategic move aligns with Freight Technologies’ vision to enhance its offerings in logistics and supply chain transparency. Additionally, the company has regained compliance with Nasdaq’s minimum stockholders’ equity requirement, following the sale of Series A4 preferred shares, with proceeds used to boost equity above the $2.5 million threshold.

Freight Technologies has also integrated its Fr8App platform with Bayer Crop Science’s Transportation Management System, aiming to improve shipment visibility and reduce lead times. This integration leverages Electronic Data Interchange technology to automate data exchanges, optimizing resource allocation and enhancing supply chain efficiency. Furthermore, the company has invested an additional $1 million in Official Trump tokens, bringing its total holdings to $2 million as part of its digital asset strategy.

These developments underscore Freight Technologies’ commitment to innovation and operational efficiency in the logistics sector. The company continues to focus on advancing its technological capabilities and expanding its digital asset portfolio to better serve its clients. Investors are closely monitoring these changes, particularly the pending formal confirmation from Nasdaq regarding the company’s compliance status.

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