Freight Technologies Inc. (FRGT) Reports Highest Monthly Increase in New Clients Since Fr8App Platform Inception
April 05 2023 - 7:00AM
Freight Technologies, Inc. (Nasdaq: FRGT)
(“Fr8Tech''), a technology company offering its custom-developed
Fr8App, an industry-leading freight-matching platform that offers a
B2B cloud-base solution for cross-border and domestic shipping
within the USMCA region, reports a record increase in the number of
new shipper clients added during the month of March 2023.
Following a challenging first quarter of the year “We have
onboarded new clients in a variety of sectors including automotive,
beverage, motorcycles and consumer goods that we had been working
on for some time,” said Harry Martin, Sales Director for Freight
Technologies. “The new shipper clients represent a potential for
significant recurring traffic on our platform and include leading
first tier automotive clients, renowned motorcycle brands, and
cocktail drinks – most of whom are household names. We expect a
recurring monthly stream from new accounts to our platform during
the month of March of more than $1 million per month, starting to
ramp in April.”
Mr. Martin continued, “On the Mexico domestic market, we had
confirmations of existing clients for our Fr8fleet business to
continue growing through the rest of 2023, and requests for new
services from existing shipper clients in the domestic Mexican
markets equivalent to almost the entire Fr8fleet 2022 revenue. We
have been tirelessly working on getting these key large shipper
clients on our platform and we are pleased to announce the signing
of a number of key accounts which will help attract carrier
activity onto our platform as well. We announced the Kimberly Clark
de Mexico multi-year contract earlier this year and anticipate a
number of additional announcements in the next 90 days.”
On March 7, Fr8Tech announced the company reached $4.4 million
in quarterly revenue for Q4 2022 with YTD 2022 revenue at an
impressive $25.9 million, up 20.6% from the prior year. Fr8Tech
management also shared its 2023 revenue guidance of $36 million,
representing a nearly 40% growth from Fr8App’s 2022 full-year
revenue.
Because Fr8Tech did not qualify for a six-month extension to
comply with Nasdaq share price requirements, Fr8Tech ordinary
shares underwent a 10 to 1 reverse share split to regain Nasdaq
compliance with trading post-split beginning as of market open on
March 24, 2023. The number of outstanding ordinary shares
immediately following the reverse split was 3,271,386. The adjusted
capital value of the company, based on shares outstanding following
the reverse split and the share price as of close of market on
March 31, 2023 of $1.560, was approximately $5.1 million, a 92.2%
discount to independent analyst’s target price for the company’s
ordinary shares of $20 per share on a split-adjusted basis. This
implies a potential upside of over 11X on the closing price of
March 28, 2023 of $1.560. The adjusted capital value of the company
based on the closing price on March 31, 2023 of $5.1 million
amounts to approximately 20.7% of TTM revenues for the year-ended
December 31, 2022 of $25.9 million, and is 14.2% of company
guidance of $36 million for total 2023 revenues. Both discount
percentages are figures that the company believes to be significant
discounts to market comparable shares.
The company’s mission is to revolutionize cross-border shipping
by providing carriers with increased growth opportunities and
shippers with flexibility, visibility and simplicity for the
once-complex process of international over-the-road shipping.
Fr8Tech anticipates another successful revenue year in 2023 with
continued growth of the Fr8App brand, additional revenue sources
from complementary brands, along with a boost in the number of
shipper client partners across multiple industry sectors.
About Freight Technologies Inc.Freight
Technologies (Nasdaq: FRGT) (“Fr8Tech") is a technology company
developing solutions to optimize and automate the supply chain
process. Its wholly owned subsidiary Freight App, Inc. (“Fr8App”)
is a B2B cross-border shipping marketplace in the USMCA region
powered by AI and machine learning. Focused on making shipping
transparent and efficient, Fr8App provides carriers with increased
growth opportunities and shippers with flexibility, visibility and
simplicity for the once-complex process of international
over-the-road (“OTR”) shipping. Fr8App uses its proprietary
technology platform to connect carriers and shippers and
significantly improve matching and operation efficiency via
innovative technologies such as live pricing and real-time
tracking, digital freight marketplace, broker, transportation
management, fleet management and committed capacity solutions. The
company is headquartered in Houston, Texas.
For more information, please visit: www.fr8technologies.com
Forward-Looking StatementsThis press release
includes “forward-looking statements” within the meaning of the
“safe harbor” provisions of the United States Private Securities
Litigation Reform Act of 1995. Freight Technologies' and Fr8App’s
actual results may differ from their expectations, estimates and
projections and, consequently, readers should not rely on these
forward-looking statements as predictions of future events. Words
such as “expect,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believes,” “predicts,” “potential,” “continue” and similar
expressions (or the negative versions of such words or expressions)
are intended to identify such forward-looking statements. These
forward-looking statements include, without limitation, Freight
Technologies’ and Fr8App’s expectations with respect to future
performance and anticipated financial impacts of its acquisition of
Fr8App.
These forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially from those discussed in the forward-looking statements.
Most of these factors are outside Freight Technologies’ and
Fr8App’s control and are difficult to predict. Factors that may
cause such differences include, but are not limited to: (1) the
impact of the COVID-19 pandemic on Fr8App’s business; (2) the
inability to obtain or maintain the listing of Freight
Technologies’ ordinary shares on Nasdaq; (3) the ability to
recognize the anticipated benefits of the merger, which may be
affected by, among other things, competition and the ability of
Fr8App to grow, manage growth profitably and retain its key
employees; (4) costs related to the merger; (5) changes in
applicable laws or regulations; (6) the possibility that Freight
Technologies or Fr8App may be adversely affected by other economic,
business and/or competitive factors; (7) risks relating to the
uncertainty of the projected financial information with respect to
Fr8App; (8) risks related to the organic and inorganic growth of
Fr8App’s business and the timing of expected business milestones;
and (9) other risks and uncertainties identified, including those
under “Risk Factors,” to be filed in Freight Technologies' other
filings with the SEC. Freight Technologies cautions that the
foregoing list of factors is not exclusive. Should one or more of
these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those indicated or anticipated by such forward-looking
statements. Freight Technologies and Fr8App caution readers not to
place undue reliance upon any forward-looking statements, which
speak only as of the date made. Freight Technologies and Fr8App do
not undertake or accept any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements
to reflect any change in their expectations or any change in
events, conditions or circumstances on which any such statement is
based.
Fr8Tech Contact:
investors@fr8technologies.com
Corporate Communications
IBN (InvestorBrandNetwork)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com
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