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HOUSTON - Freight Technologies, Inc. (NASDAQ:FRGT), known as Fr8Tech, a company specializing in logistics management and technology-driven solutions, has announced the acquisition of $5.2 million in FET Tokens from Fetch Compute, Inc. This strategic move involves the exchange of 2,311,248 Series A4 preferred shares and marks an expansion into the decentralized AI ecosystem for Fr8Tech. According to InvestingPro data, the company’s market capitalization stands at $5.09 million, with the stock currently trading near its 52-week low of $0.93.
FET Tokens are the cryptocurrency of Fetch.ai, a decentralized machine learning platform that offers scalable and secure AI solutions. The acquisition aligns with Fr8Tech’s vision to enhance their offerings in the Over-the-Road (OTR) carrier and logistics markets. According to Fr8Tech’s CEO, Javier Selgas, the purchase of FET Tokens is a step towards providing clients with real-time visibility and greater supply chain transparency. InvestingPro analysis reveals the company faces significant financial challenges, with a negative EBITDA of $8.53 million and a concerning cash burn rate. Subscribers can access 15+ additional ProTips about Fr8Tech’s financial health.
Fr8Tech’s recent AI Tendering Bot launch, aimed at automating the load tendering process, complements this new investment. The bot is designed to streamline operations for shippers and freight brokers. With the addition of FET Tokens to its balance sheet, Fr8Tech is positioning itself to further innovate within the logistics industry. The company’s revenue stands at $17.57 million for the last twelve months, though it faces challenges with negative gross profit margins of -24.57%.
Fr8Tech’s suite of solutions includes the Fr8App platform, which facilitates seamless OTR B2B cross-border shipping across the USMCA region. Other services under the company’s umbrella are Fr8Now for less-than-truckload shipping, Fr8Fleet for dedicated capacity service in Mexico, Waavely for ocean freight booking, and Fleet Rocket, a Transportation Management System for logistics operators.
The company, headquartered in Houston, Texas, emphasizes that this acquisition is part of their commitment to logistics innovation. The collaboration with Fetch.AI is expected to bolster Fr8Tech’s development partnership, focusing on blockchain and AI technologies in the logistics space.
The information about this strategic acquisition is based on a press release statement, which includes forward-looking statements subject to risks and uncertainties. These statements are not guarantees of future performance, and actual results could differ materially from those projected. Factors that may influence these outcomes include market conditions, regulatory changes, and competitive forces. InvestingPro data shows the stock has declined 96.94% over the past year, with analysts expecting continued challenges ahead. Get comprehensive analysis and Fair Value estimates with an InvestingPro subscription.
In other recent news, Freight Technologies, Inc. announced the completion of a $3 million private placement of Series A4 preferred shares, with net proceeds of approximately $2.9 million designated for working capital and strategic growth initiatives. The company also unveiled its new Transportation Management System (TMS) called Fleet Rocket, aimed at optimizing logistics operations with features like real-time tracking and API-driven integrations. As part of a strategic shift towards technology, Freight Technologies reduced its workforce by 20% to align resources with technological goals, expecting these measures to strengthen financial results through 2025.
The company has also made a significant amendment to its corporate governance structure by lowering the quorum requirement for shareholder meetings from 50% to one-third of the votes. This change is intended to facilitate the conduct of shareholder meetings and streamline decision-making processes. Additionally, Freight Technologies appointed two new independent directors, Leilei Nie and Andres Gonzalez, to its board, following the resignations of two previous members. CEO Javier Selgas expressed optimism about the new directors’ contributions to the company’s growth.
These developments reflect Freight Technologies’ ongoing efforts to enhance its operational efficiency and strategic focus. The company has also renewed a multi-year logistics services agreement with Kimberly-Clark de México, indicating continued expansion and adoption of its solutions. Freight Technologies plans to file a registration statement with the SEC for the ordinary shares issuable upon conversion of the preferred shares by March 30, 2025.
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