Freight Technologies lowers quorum for shareholder meetings

Freight Technologies, Inc. (NASDAQ:FRGT), a micro-cap freight logistics company with a market capitalization of $7 million and annual revenue of $17.6 million, has made a significant amendment to its corporate governance structure. According to InvestingPro analysis, the company currently faces significant financial challenges, with its stock down nearly 98% over the past year. On January 24, 2025, the company filed an Amended and Restated Memorandum and Articles of Association, which was announced in a recent 8-K filing with the Securities and Exchange Commission.

The amendment, approved by shareholders at the Annual Meeting held on December 13, 2024, reduces the quorum requirement for shareholder meetings. Previously set at not less than 50% of the votes of the ordinary shares entitled to vote, the quorum has now been lowered to one-third of these votes. This change aims to facilitate the conduct of shareholder meetings and potentially streamline decision-making processes. The governance change comes as InvestingPro data reveals the company operates with a concerning current ratio of 0.91 and significant debt burden.

The British Virgin Islands-based company, with its principal executive offices in The Woodlands, TX, has made this strategic move to adjust its governance in alignment with shareholder preferences and to ensure smoother operations within its corporate framework.

The details of the amended documents reflect the company’s commitment to maintaining a governance structure that meets the needs of its shareholders and supports efficient management. The full text of the Amended and Restated Memorandum and Articles of Association is incorporated by reference from Exhibit 3.1 of the 8-K filing.

Freight Technologies’ decision to amend its quorum requirement is a noteworthy development for shareholders and investors, as it could influence the company’s agility in making key decisions. This change is now part of the company’s official corporate records following its filing with the Registrar of Corporate Affairs in the British Virgin Islands.

For further details on the amendments, stakeholders can refer to the 8-K filing, which serves as the source of this information. The company, led by CEO Javier Selgas, continues to focus on its core business activities while ensuring that its corporate governance aligns with the interests of its shareholders. InvestingPro subscribers have access to 15 additional investment tips and comprehensive financial metrics that provide deeper insights into FRGT’s financial health, which is currently rated as weak with an overall score of 1.21.

In other recent news, Freight Technologies faces potential NASDAQ delisting due to a reported deficit in stockholders’ equity. The company plans to submit a compliance plan within the given 45-day window. Despite this, Freight Technologies has seen positive developments, securing a new contract with a global toy brand and renewing its logistics services contract with Kimberly-Clark (NYSE:KMB) de México. The company also reported a 6.6% revenue increase in the first half of 2024, totaling $8.1 million, and a 40% rise in gross profits year-over-year. Analysts from InvestingPro forecast a 140% revenue growth for the company.

Freight Technologies’ shareholders recently approved key proposals, including the election of directors and the ratification of the independent auditor, Marcum LLP. Two amendments were also passed, changing the ordinary shares’ par value and reducing the quorum for shareholder meetings. However, the 2024 Annual General Meeting was adjourned due to a lack of quorum.

The company has 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. These recent developments reflect Freight Technologies’ ongoing efforts to grow and improve its business operations.

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