FRGT stock plunges to 52-week low, hits $1.16 amid steep decline

Published 28/02/2025, 15:38
FRGT stock plunges to 52-week low, hits $1.16 amid steep decline

In a tumultuous turn of events, FRGT stock has plummeted to a 52-week low, with shares dropping to a distressing $1.16. According to InvestingPro data, this represents a dramatic fall from the 52-week high of $47, with the company’s market capitalization now standing at just $5.9 million. This latest price level reflects a staggering 1-year change, with China Internet Financial, the parent company, witnessing its value erode by an alarming 96.95%. Investors have been navigating a challenging landscape marked by this precipitous decline, as the company grapples with significant operational challenges. InvestingPro analysis reveals concerning metrics, including negative gross margins of -24.57% and an EBITDA of -$8.53 million in the last twelve months. The 52-week low serves as a stark indicator of the hurdles faced over the past year, casting a shadow over the company’s financial health and future prospects. InvestingPro rates the company’s overall financial health as "WEAK," with additional insights available through their comprehensive analysis platform, including 13 key ProTips about the company’s financial situation.

In other recent news, Freight Technologies, Inc. announced the completion of a $3 million private placement of Series A4 preferred shares, which will be used for working capital and strategic growth initiatives. The company has also introduced a new Transportation Management System called Fleet Rocket, designed to optimize logistics operations for various entities, including brokers and shippers. This launch aligns with the company’s strategic shift towards technology, which also involved a 20% reduction in workforce to enhance operational efficiency. Furthermore, Freight Technologies has made amendments to its corporate governance, reducing the quorum requirement for shareholder meetings from 50% to one-third of the votes.

These changes aim to facilitate smoother decision-making processes. Additionally, Freight Technologies recently appointed two new independent directors, Leilei Nie and Andres Gonzalez, to its board. This follows the resignations of Paul Freudenthaler and William Samuels, who left without any disputes or disagreements. CEO Javier Selgas expressed gratitude for investor support and highlighted the company’s focus on technological advancements and strategic growth. The company has also renewed a multi-year logistics services agreement with Kimberly-Clark (NYSE:KMB) de México, indicating sustained business relationships.

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