HOUSTON - Freight Technologies, Inc. (NASDAQ:FRGT), also known as Fr8Tech, a technology firm specializing in supply chain optimization, has been notified by Nasdaq that it currently fails to meet the minimum bid price requirement for continued listing on the Nasdaq Capital Market. The company's shares have been trading below the $1.00 threshold for 30 consecutive business days, triggering a notice of non-compliance with Nasdaq Listing Rule 5550(a)(2).
The rule stipulates that listed companies must maintain a minimum closing bid price of $1.00 per share. Fr8Tech, which also operates the Fr8App platform for business-to-business (B2B) cross-border shipping in the USMCA region, now has a 180-day period, until November 18, 2024, to regain compliance. During this period, if Fr8Tech's shares manage to close at $1.00 or higher for at least ten consecutive business days, the company will be considered compliant, and the matter will be resolved.
If compliance is not achieved within this timeframe, Fr8Tech may be granted an additional 180 days, provided it meets all other initial listing standards for the Nasdaq Capital Market, except for the bid price. The company would also need to notify Nasdaq of its intention to cure the deficiency, potentially through a reverse stock split, which would need to be completed by October 31, 2024.
Fr8Tech has not yet decided on a course of action in response to the Nasdaq notification. The company's Fr8App platform aims to streamline the shipping process by using artificial intelligence (AI) and machine learning to match carriers with shippers, offering features like live pricing, real-time tracking, and a digital freight marketplace.
InvestingPro Insights
Freight Technologies, Inc. (NASDAQ:FRGT) is navigating choppy waters as the company deals with Nasdaq compliance issues, alongside financial metrics that reflect a challenging period. According to real-time data from InvestingPro, Fr8Tech's market capitalization stands at a modest $109.85 million, with a Price/Book ratio for the last twelve months as of Q4 2023 at a lofty 42.07. This high Price/Book multiple suggests the stock may be overvalued relative to the company's net asset value, a factor that could be influencing investor sentiment.
Additionally, the firm's revenue has declined by 34.1% over the last twelve months as of Q4 2023, which is a significant contraction that could be contributing to the bearish trend in its share price. The company's gross profit margin is also in negative territory at -27.04%, indicating that Fr8Tech is currently spending more to produce its goods than it's making from sales—a trend that is unsustainable in the long run.
InvestingPro Tips highlight that analysts are not expecting Fr8Tech to be profitable this year, and the stock has been trading with high volatility. These factors, combined with the stock trading near its 52-week low, paint a picture of a company that is facing considerable headwinds. For investors seeking a deeper dive into the company's prospects, there are 15 additional InvestingPro Tips available, which can provide further insights into Fr8Tech's financial health and market performance.
For those considering whether to invest in Fr8Tech or seeking to understand the company's potential to rebound, the additional tips on InvestingPro could prove invaluable. To access these insights and more, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This promotion offers an opportunity for investors to make more informed decisions with the aid of comprehensive data and expert analysis.
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