HOUSTON, April 05, 2023 (GLOBE NEWSWIRE) -- 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 Statements
This 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.
