ShiftPixy announces $2.5 million securities offering

MIAMI - ShiftPixy, Inc. (NASDAQ:PIXY), a staffing enterprise operating within the Gig Economy, has announced the pricing of a new securities offering expected to close on Tuesday. The offering consists of over 2.4 million common shares and series A and B warrants, with the potential to raise approximately $2.5 million before fees and expenses.

The shares and warrants are priced at $1.04 each, with series A warrants exercisable for five years and series B warrants for two years following shareholder approval. ShiftPixy anticipates using the proceeds for general corporate purposes, including working capital.

A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the sole placement agent for the transaction. The offering is based on a registration statement that was declared effective by the Securities and Exchange Commission on August 22, 2024.

Simultaneously, ShiftPixy has negotiated with an existing investor to adjust the exercise price of previously issued warrants to align with the current offering's terms. This adjustment will take effect upon shareholder approval.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such offer or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

ShiftPixy specializes in providing a platform for workforce management that addresses compliance and administrative challenges faced by businesses employing shift workers. The company's approach aims to connect employers with a workforce ready for gig opportunities while managing workers' compensation and compliance programs.

Investors and interested parties are advised that ShiftPixy will continue to update its operations and required disclosures through its social media channels and the SEC's website.

The information provided is based on a press release statement from ShiftPixy, Inc.

In other recent news, ShiftPixy, a Miami-based staffing agency, has secured shareholder approval for several key proposals. The most notable of these is the ratification of a reverse stock split, a strategic move that companies often undertake to increase the market price of their shares. The split, which could range from one-for-two to one-for-twenty, received significant support from shareholders, with 4,804,923 votes in favor.

In addition to the reverse stock split, shareholders also approved the July 2023 Offering and the potential adjournment of the special meeting to a later date if necessary for further proxy solicitation and voting. These recent developments, reported in the company's SEC filing, reflect a clear consensus among shareholders on ShiftPixy's strategic decisions.

These developments are part of the company's broader strategy to enhance its market positioning and comply with exchange listing requirements. The company's actions are closely watched by analysts, who often provide projections and expectations for the company's financial health.

InvestingPro Insights

As ShiftPixy, Inc. (NASDAQ:PIXY) navigates the Gig Economy with its latest securities offering, current and potential investors might consider several key financial metrics and insights from InvestingPro. With a market capitalization of just over $7 million, ShiftPixy is a small-cap company that has been experiencing significant volatility and financial challenges.

One of the notable InvestingPro Tips for ShiftPixy is the company's rapid cash burn, which raises concerns about the sustainability of its operations without consistent access to financing. This aligns with the company's recent move to raise capital through a securities offering. Additionally, the company has been flagged for its weak gross profit margins, which stood at 3.88% over the last twelve months as of Q3 2024. This indicates that ShiftPixy is struggling to retain earnings from its revenues, which could impact its long-term growth potential.

InvestingPro Data further reveals a troubling picture of the company's profitability and stock performance. ShiftPixy has not been profitable over the last twelve months, with a staggering operating income margin of -195.43%. The stock has also taken a significant hit, with a one-year price total return of -93.24%, reflecting investors' concerns about the company's financial health and future prospects.

For those interested in a deeper dive into ShiftPixy's financials and performance, InvestingPro offers additional insights. There are 14 more InvestingPro Tips available, which could provide a comprehensive understanding of the company's challenges and potential opportunities. These tips can be accessed through the dedicated InvestingPro platform for ShiftPixy at https://www.investing.com/pro/PIXY.

ShiftPixy's efforts to adjust the exercise price of previously issued warrants may provide some short-term relief for existing investors, but the company's long-term viability will likely hinge on its ability to improve its profitability and stabilize its financial position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.