HOUSTON - Freight Technologies, Inc. (NASDAQ:FRGT), known as Fr8Tech, a company specializing in logistics management and supply chain solutions, has successfully regained compliance with the Nasdaq's minimum bid price requirement. The notification, received on Monday, confirmed that the company's common stock had maintained the necessary minimum closing bid price of $1.00 or more for at least 10 consecutive trading days.
The compliance milestone follows a previous notification from the Nasdaq on May 22, 2024, which indicated that Fr8Tech's stock had fallen short of the minimum bid price of $1.00 for 30 consecutive business days. To address this, the company was required to sustain a minimum bid price at or above $1.00 over a period of 10 consecutive trading days, a criterion it fulfilled from September 25, 2024, through October 8, 2024.
Fr8Tech offers a suite of technology-driven services aimed at optimizing and automating the supply chain process. Its portfolio includes the Fr8App platform for over-the-road (OTR) business-to-business (B2B) cross-border shipping, Fr8Now for less-than-truckload (LTL) shipping, Fr8Fleet for dedicated capacity service in Mexico, and Waavely for ocean freight booking. These interconnected products leverage artificial intelligence and machine learning to improve operational efficiency in the supply chain ecosystem.
The company's headquarters are located in Houston, Texas, and it operates with a focus on the USMCA region, offering services such as live pricing, real-time tracking, digital freight marketplace, brokerage support, transportation management, fleet management, and committed capacity solutions.
This announcement, based on a press release statement, signifies a positive step for Fr8Tech in maintaining its listing on the Nasdaq Stock Market, which is often seen as a barometer of a company's financial health and investor confidence. The company's re-compliance with Nasdaq's listing rules may be viewed as an indicator of stability and adherence to market standards by investors and stakeholders within the logistics and supply chain sector.
In other recent news, Freight Technologies, also known as Fr8Tech, has announced a one-for-twenty-five reverse stock split of its shares, a move aimed at complying with Nasdaq's minimum bid price requirement. This development comes in the wake of Fr8Tech's reported 6.6% increase in revenue for the first half of 2024, totaling $8.1 million, alongside a 40% rise in gross profits year-over-year. The company has also launched its Transportation Management System (TMS), a digital command center for logistics teams.
In merger news, Fr8Tech has entered into a partnership with Bayer (OTC:BAYRY) CropScience LP to provide truckload services for the 2025 season across six essential cross-border lanes in the United States. This is expected to enhance Bayer's supply chain efficiency. Additionally, Fr8Tech has expanded its collaboration with Amazon (NASDAQ:AMZN) Mexico to include U.S.-Mexico cross-border shipping operations.
In other company news, Fr8Tech resolved outstanding promissory notes and convertible notes with Freight Opportunities LLC, thereby strengthening its balance sheet. Despite potential Nasdaq delisting, these recent developments contribute to Fr8Tech's ongoing efforts to maintain a positive financial trajectory.
InvestingPro Insights
While Freight Technologies, Inc. (NASDAQ:FRGT) has successfully regained compliance with Nasdaq's minimum bid price requirement, recent InvestingPro data reveals some challenges facing the company. The stock's price has experienced significant declines, with a one-year price total return of -98.19% as of the latest data. This steep decline is reflected in the company's current market capitalization of $270.76 million.
InvestingPro Tips highlight that FRGT's stock generally trades with high price volatility, which aligns with the recent compliance issues and subsequent recovery. The company's financial performance also presents concerns, as it is not profitable over the last twelve months and analysts do not anticipate profitability this year.
Despite these challenges, there are some potential positives. An InvestingPro Tip indicates that analysts anticipate sales growth in the current year, which could be crucial for the company's efforts to improve its financial position. Additionally, the stock's RSI suggests it may be in oversold territory, potentially indicating a buying opportunity for risk-tolerant investors.
For those interested in a deeper analysis, InvestingPro offers 15 additional tips for FRGT, providing a more comprehensive view of the company's financial health and market position.
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