Freight Technologies Completes $3 Million Private Placement Offering

On January 31, 2025, Freight Technologies, Inc. (NASDAQ: FRGT) successfully concluded a private placement deal with specific investors, resulting in the issuance of 1,540,832 Series A4 preferred shares. The Preferred Shares, each priced at $0.0001 per share, provided a total purchase value of roughly $3,000,000. Following deductions for transfer agent and legal fees and expenses, the Offering secured net cash proceeds of around $2.9 million.

The firm plans to allocate these raised funds towards bolstering its working capital and supporting various corporate endeavors. As per the recently amended Memorandum and Articles of Association, each Preferred Share is instantly convertible into a specific number of ordinary shares of the Company without the need for additional consideration. The conversion price is determined by the applicable Preferred Shares Conversion Price under the revised documents.

Subsequent to this private placement, Freight Technologies entered into a Securities Purchase Agreement with the investors. Per the terms, the Company undertakes to file a resale registration statement with the SEC by March 30, 2025, to register the Ordinary Shares linked to the Preferred Shares for trading. Failure to comply with this obligation may result in specified liquidated damages being paid to the investors, capped at 20% of the total reference price of the Preferred Shares sold in the Offering.

This Offering was exempt from registration requirements under the Securities Act of 1933, facilitated by exemptions applicable to transactions without public offerings. All investors involved declared their status as accredited investors under Rule 501(a) of Regulation D, acquiring securities solely for investment purposes and not for resale in public markets.

Additionally, the Company announced the approval of the amended Memorandum and Articles of Association on January 31, 2025. The adjustment pertained to changing the Series A4 Conversion Price to the current Preferred Shares Conversion Price detailed in the Offering.

The description provided herein is a summary and is subject to the full details contained in the corresponding documents attached to the Form 8-K filed by Freight Technologies with the SEC. Investors and stakeholders should refer to the complete agreements and terms for comprehensive information regarding this transaction.

In related news, the company released a press statement on February 3, 2025, heralding the successful closure of the Offering. The provided press release is available as Exhibit 99.1 in the Form 8-K filing, offering further insight into this financial development.

The company, headquartered in The Woodlands, TX, is expected to optimize these newly raised funds for operational growth and strategic pursuits in the foreseeable future.

The release of forward-looking statements in this context shall not be construed as definitive projections of future performance due to inherent uncertainties and risks associated with such statements.

Contact:
Freight Technologies, Inc.
2001 Timberloch Place, Suite 500, The Woodlands, TX 77380
Phone: (773) 905-5076
Email: [email protected]

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Freight Technologies’s 8K filing here.

Freight Technologies Company Profile

Freight Technologies, Inc, through its subsidiary, operates a transportation logistics technology platform for cross-border shipping in the United States and Mexico. Its Fr8App technology platform offers an online portal and a mobile application that provide third-party logistics services to companies in the freight transportation market; a transport management solution for customers to manage their own fleet; and freight brokerage support and customer services based on the platform.