HOUSTON - Freight Technologies Inc. (NASDAQ:FRGT), known as Fr8Tech, has been chosen by Bayer (OTC:BAYRY) CropScience LP, a division of Bayer AG (ETR:BAYGN), to provide truckload services for the 2025 season across six essential cross-border lanes in the United States. This collaboration aims to enhance Bayer's supply chain efficiency, particularly in the transportation of agricultural products between the U.S. and Mexico.
The partnership, announced today, emerged from a competitive Request for Proposal process, which resulted in Fr8App, Fr8Tech's technology-driven logistics platform, securing the contract. The agreement is expected to support Bayer’s objectives including supplier consolidation, cost optimization, and improved carrier performance.
Fr8Tech's CEO, Javier Selgas, expressed the company's commitment to meeting Bayer's expectations, emphasizing the significance of this milestone in demonstrating the strength of Fr8Tech's technology and its ability to manage complex logistics operations.
Fr8Tech, headquartered in Houston, Texas, offers a suite of solutions designed to optimize and automate supply chain processes. Its portfolio includes Fr8App for over-the-road (OTR) B2B cross-border shipping, Fr8Now for less-than-truckload (LTL) shipping, Fr8Fleet for dedicated capacity in Mexico, and Waavely for ocean freight management.
This press release statement also contains forward-looking statements regarding Fr8Tech and its future operations. These statements are based on current expectations and projections about future events and are subject to risks, uncertainties, and assumptions about Fr8Tech, including, among other things, the risk of changes in laws or regulations, economic, business, and competitive factors.
Fr8Tech cautions readers that actual results may differ from those expected and that forward-looking statements are not guarantees of future performance. All forward-looking statements made by Fr8Tech are based on information available to the company at the time of the statement, and the company does not undertake to update any forward-looking statements.
In other recent news, Freight Technologies, also known as Fr8Tech, reported a 6.6% revenue increase in the first half of 2024, totaling $8.1 million, with gross profits rising by 40% year-over-year. The company has also announced the launch of its Transportation Management System (TMS) solution, a comprehensive digital command center for logistics teams. In terms of financial obligations, Fr8Tech has resolved outstanding promissory notes and convertible notes with Freight Opportunities LLC, strengthening its balance sheet and freeing up cash for further investment.
In partnership news, Fr8Tech has expanded its collaboration with Amazon (NASDAQ:AMZN) Mexico to include U.S.-Mexico cross-border shipping operations through its Fr8App platform. Additionally, the company has been selected by Solave, a significant player in the Blue Agave market, to manage its cross-border logistics. These developments aim to enhance supply chain efficiency and underline Fr8Tech's ongoing efforts to foster strategic partnerships.
Despite facing potential Nasdaq delisting, the company reported steady growth in its Q4 2023 revenue, approximately $5 million for the quarter, marking a 7.5% increase from the previous quarter and a 16% rise from the same period in 2022. These financial and operational developments are recent and contribute to Fr8Tech's continuous efforts to navigate compliance challenges and maintain a positive financial trajectory.
InvestingPro Insights
As Freight Technologies Inc. (Fr8Tech) embarks on its partnership with Bayer CropScience LP for the 2025 season, its financial health and market performance are crucial for investors monitoring the company's ability to deliver on its new commitments. According to InvestingPro data, Fr8Tech currently has a market capitalization of $24.4 million, signaling a relatively small player in the logistics industry. The company's revenue for the last twelve months as of Q4 2023 stands at $17.06 million, but it's important to note a significant decline in revenue growth of -34.1% over the same period.
InvestingPro Tips indicate that analysts are optimistic about sales growth in the current year, which could be bolstered by the new deal with Bayer. However, the company's stock price has been volatile, with a 1-week price total return showing a -15.21% decline, which could be a point of concern for short-term investors. The company's stock is also considered to be in oversold territory according to the Relative Strength Index (RSI), suggesting that the current sentiment may be more pessimistic than warranted by the company's fundamentals.
Furthermore, Fr8Tech does not pay dividends to shareholders, which might be a consideration for income-focused investors. For those interested in a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/FRGT, which could provide further insights into Fr8Tech's financial health and market performance.
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