The notice does not immediately affect the trading of Freight Technologies’ ordinary shares, which will continue to be listed and traded on the NASDAQ Capital Market under the ticker symbol "FRGT." InvestingPro subscribers can access 12 additional key insights about FRGT’s financial position and market performance, along with detailed valuation metrics and growth forecasts. InvestingPro subscribers can access 12 additional key insights about FRGT’s financial position and market performance, along with detailed valuation metrics and growth forecasts.
As reported in its Form 8-K filed on January 10, 2025, Freight Technologies’ stockholders’ equity was in a deficit of $32,356 as of June 30, 2024. With an EBITDA of -$8.53 million in the last twelve months and negative gross profit margins of -24.57%, the company also does not meet the alternative compliance standards based on the market value of listed securities or net income from continuing operations.
Freight Technologies has 45 calendar days from the notice date to submit a compliance plan to NASDAQ. If the plan is accepted, the exchange may grant an extension of up to 180 days for the company to demonstrate compliance. The company believes it has a viable plan that will rectify the shareholders’ equity deficit and satisfy NASDAQ’s requirements. They intend to submit this plan within the designated timeframe.
The notice does not immediately affect the trading of Freight Technologies’ ordinary shares, which will continue to be listed and traded on the NASDAQ Capital Market under the ticker symbol "FRGT."
The company cautions that while it aims to submit a plan promptly and believes in its potential effectiveness, there is no certainty that NASDAQ will accept the plan or that the company will achieve compliance within the given period.
In other recent news, Freight Technologies has been making significant strides in its business operations. The company announced the renewal of its logistics services contract with Kimberly-Clark (NYSE:KMB) de México for another two years, and secured a new contract with a leading global toy brand for logistics services in Mexico. The company also reported a 6.6% increase in revenue for the first half of 2024, totaling $8.1 million, and a 40% rise in gross profits year-over-year. Analysts from InvestingPro have forecasted a 140% revenue growth for Freight Technologies.
In addition, the company’s shareholders have approved key proposals, including the election of directors and the ratification of the independent auditor, Marcum LLP. However, the 2024 Annual General Meeting was adjourned due to a lack of quorum. Freight Technologies has also expanded its partnerships with Bayer (OTC:BAYRY) CropScience LP for truckload services and Amazon (NASDAQ:AMZN) Mexico for U.S.-Mexico cross-border shipping operations.
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