Fr8Tech Raises $1.2M in Private Placement, Continues Restructuring
Freight Technologies, Inc. (Fr8Tech) announced it entered into a securities purchase agreement to sell 1,200,000 Series C preferred shares for an aggregate purchase price of $1.2 million in a private placement. The company expects net cash proceeds of approximately $1.15 million, which will be used for working capital, corporate purposes, and ongoing restructuring. This capital raise supports Fr8Tech's strategic pivot to a pure-play, software-driven logistics technology company, which includes significant workforce reductions and scaling back brokerage operations. Additionally, the company disclosed side letters with existing investors, DIP SPV I and the May Investor, setting conversion price floors for their Series C Preferred Shares at $1.68 and $1.102, respectively.
Key Highlights
- Fr8Tech entered a securities purchase agreement to sell 1,200,000 Series C preferred shares for $1,200,000.
- The private placement is expected to raise net cash proceeds of approximately $1.15 million.
- Proceeds will be used for working capital, corporate purposes, and ongoing restructuring efforts.
- Company completed significant workforce reductions in Q2 2026, primarily in brokerage operations.
- Fr8Tech expects to incur approximately $0.4 million in severance and restructuring costs.
- DIP SPV I agreed not to convert Series C shares below $1.68 per share.
- May Investor agreed not to convert Series C shares below $1.102 per share.
- Cash and cash equivalents were approximately $285 thousand as of June 30, 2026.
Price Impact
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