FRGT

Fr8Tech Advances AI-Native Transformation, Reduces Workforce and Raises Additional Capital

Fr8Tech Advances Software Pivot, Secures Financing, Restructuring Aims for Profitability

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    <h3>Information</h3>
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    <h3>AI Summary</h3>
    <p>Fr8Tech is accelerating its shift from an online broker to a software-first AI logistics platform, cutting staff and brokerage exposure while securing financing to fund restructuring. The company completed a $1.2 million Series C and refinanced debt into a single lender, aiming for meaningful cost savings and higher software margins as revenue scales in the USMCA region. Management targets profitability by late 2026 if execution meets plan.</p>
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    <h3>Key Points</h3>
    <ul><li>Fr8Tech advances pivot to software/AI; workforce and brokerage ops reduced.</li><li>Raising $1.2m via Series C; debt refinanced into a single lender.</li><li>Q2 cost cuts lower expenses; restructuring expected by end of Q3 2026.</li><li>Exploring strategic alternatives for brokerage; no guarantee of transaction.</li><li>Liquidity snapshot: cash ~$0.285m; receivables ~$3.5m; debt ~$2.5m.</li></ul>
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    <h3>Companies Mentioned</h3>
    <ul><li><strong>Freight Technologies, Inc. (FRGT)</strong>: Pivot to SaaS/AI platform; cost reductions and debt refinancing are intended to improve margins and profitability.</li><li><strong>Fr8App Inc. (N/A)</strong>: Brokerage-focused unit under strategic review; potential sale could alter future revenue mix.</li><li><strong>Waavely (N/A)</strong>: Ocean freight platform; part of cross-border ecosystem; impact depends on integration with software stack.</li><li><strong>Fleet Rocket (N/A)</strong>: AI-powered TMS core to Fr8Tech platform; growth driver if AI modules scale in USMCA markets.</li></ul>
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    <h3>Corporate Developments</h3>
    <p>Category: Corporate Developments. The article centers on restructuring, financing, and strategic pivots, which are core influences on FRGT&#039;s outlook and valuation.</p>
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    <h3>Market-Moving</h3>
    <ul><li>Debt refinancing consolidates lender relationship and lowers liquidity risk.</li><li>Series C funds bolster working capital for restructuring.</li><li>Strategic brokerage review creates potential M&amp;A risk or upside.</li></ul>
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    <h3>Key Facts</h3>
    <ul><li>June 30, 2026: cash and cash equivalents approximately $0.285 million.</li><li>Unbilled accounts receivable approximately $3.5 million; accounts payable and accrued expenses approximately $2.5 million.</li><li>Short-term debt approximately $2.5 million.</li><li>June 18, 2026: secured $2.5 million loan; 10% interest; matures June 17, 2027.</li><li>July 14, 2026: agreed to issue 1,200,000 Series C preferred shares for $1.2 million; net proceeds ~$1.15 million.</li><li>Severance and restructuring costs expected approximately $0.4 million; $0.2 million incurred in Q2.</li></ul>
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    <h3>Trading Thesis</h3>
    <p>FRGT could trend higher in 3–6 months as restructuring reduces burn and boosts margins.</p>
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  <h2>Fr8Tech Advances AI-Native Transformation, Reduces Workforce and Raises Additional Capital</h2>

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    <p>HOUSTON, July 15, 2026 (GLOBE NEWSWIRE) -- Freight Technologies, Inc. (NASDAQ: FRGT, "Fr8Tech" or the "Company"), a technology-centric logistics company offering a diversified portfolio of AI software solutions designed to address key inefficiencies in the supply chain, today announced that it has completed additional steps in its transition from an online freight broker to a pure-play, software and AI logistics technology company. These steps include a further reduction in workforce, a reduction of certain brokerage operations, and raising <strong>$1.2 million</strong> through the issuance of additional Series C Preferred Shares. The Company expects these actions to meaningfully lower operating expenses, reduce outstanding debt, and support a higher-margin business model as Fr8Tech continues to scale its software solutions.</p>
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    <h3>Strategic shift and ongoing evaluation of brokerage operations</h3>
    <p>As previously announced, Fr8Tech is exploring strategic alternatives for its online brokerage operations, including a potential sale, and has engaged with multiple interested parties as part of that process.</p>
    <p>Certain Fr8Fleet dedicated capacity operations were successfully transitioned to other operators in the second quarter of 2026. Ongoing discussions regarding Fr8App over-the-road, spot market and Waavely ocean container brokerage services remain exploratory in nature. No assurance can be given that the exploration of strategic alternatives will result in any transaction. In connection with this ongoing process, and consistent with the Company’s deliberate pivot away from brokerage operations, Fr8Tech has taken further action to reduce the scope and expenses of its brokerage business.</p>
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    <h3>Workforce reductions and anticipated cost savings</h3>
    <p>The Company completed significant workforce reductions in the second quarter of 2026, concentrated primarily within its brokerage operations. These actions are expected to materially reduce the Company’s ongoing operating expenses and headcount-related costs, while preserving enterprise customer relationships, technology infrastructure, and its software and AI development pipeline that support Fr8Tech’s SaaS and AI product offerings.</p>
    <p>The Company expects to substantially complete its restructuring by the end of the third quarter of 2026 and to incur severance and other restructuring costs of approximately <strong>$0.4 million</strong>; <strong>$0.2 million</strong> of which was incurred in the second quarter.</p>
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    <p>These developments follow the Company’s June 18<sup>th</sup> announcement of securing a <strong>$2.5 million</strong> loan, the net proceeds of which were used to repay in full and terminate the Company’s prior credit facility. The new loan bears interest at <strong>10.0%</strong> per annum, matures on June 17, 2027, and consolidates Fr8Tech’s debt structure under a single lender relationship. Further, on July 14, 2026, the Company entered into a securities purchase agreement with an institutional investor (the "Buyer"), pursuant to which the Company agreed to sell to the Buyer <strong>1,200,000</strong> Series C preferred shares, par value <strong>$0.0001</strong> per share, of the Company, for an aggregate purchase price of <strong>$1,200,000</strong> (the "Offering"). The Offering is expected to raise net cash proceeds of approximately <strong>$1,150,000</strong> after deducting the estimated expenses payable by the Company. The Company intends to use the net cash proceeds from the Offering for its ongoing restructuring, working capital, and general corporate purposes.</p>
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    <h3>Liquidity snapshot as of June 30, 2026</h3>
    <p>As of June 30, 2026, the Company held cash and cash equivalents of approximately <strong>$285 thousand</strong>, billed and unbilled accounts receivable of approximately <strong>$3.5 million</strong>, accounts payable and accrued expenses of approximately <strong>$2.5 million</strong>, and short-term debt of approximately <strong>$2.5 million</strong>. These figures are unaudited and have not been reviewed by the Company’s auditors.</p>
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    <h3>Management commentary on the restructuring</h3>
    <p>“The actions we have taken in the second quarter reflect a deliberate and disciplined approach to reshaping our cost base,” said Don Quinby, Chief Financial Officer of the Company. “By establishing a leaner cost structure and accelerating the transition away from brokerage operations, we are building the financial foundation from which Fr8Tech can scale its recurring, higher-margin SaaS and AI-based revenue streams and creating a sustainable path toward profitability.”</p>
    <p>“Together, these actions mark a decisive and disciplined step in our transformation into a pure-play, software-first technology company,” said Javier Selgas, Chief Executive Officer of the Company. “By reducing our workforce further, scaling back brokerage operations, and consolidating our debt, we are systematically removing operational complexity and financial friction from the business, and simultaneously focusing our capital and our talent on the commercialization of our software platform. Fr8Tech is building an AI-powered platform anchored by Fleet Rocket, where AI agents and automation tools are designed to streamline freight operations from tendering to delivery across the USMCA corridor.”</p>
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    <h3>Market opportunity and strategic platform</h3>
    <p>Fr8Tech believes that the cross-border freight market it targets remains a highly dynamic and underpenetrated technology opportunity in North American logistics, driven by ongoing nearshoring investment in Mexico and continued growth in cross-border trade. Fr8Tech’s software platform — anchored by Fleet Rocket and its growing ecosystem of AI-powered modules and applications — continues to generate recurring software contracts as the Company directs its full resources toward its AI-powered, software-first strategy across the USMCA region.</p>
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    <h3>About Freight Technologies Inc. (FRGT)</h3>
    <p>Freight Technologies (NASDAQ:<a href="https://www.benzinga.com/quote/FRGT">FRGT</a>) ("Fr8Tech") is a technology company offering a diverse portfolio of proprietary platform solutions powered by AI and machine learning to optimize and automate the supply chain process. Focused on addressing the distinct challenges within the supply chain ecosystem, the Company’s portfolio of solutions includes the Fr8App platform for seamless OTR B2B cross-border shipping across the USMCA region; Fr8Now, a specialized service for less-than-truckload (LTL) shipping; Fr8Fleet, a dedicated capacity service for enterprise clients in Mexico; Waavely, a digital platform for efficient ocean freight booking and management of container shipments between North America and ports worldwide; Fleet Rocket, a nimble, scalable and cost-effective Transportation Management System (TMS) for brokers, shippers, and other logistics operators; and Zayren, an AI-based, machine learning pricing-prediction tool and carrier-matching platform designed specifically for cross-border and domestic OTR freight shipments across Mexico and the United States. Together, each product is interconnected within a unified platform to network carriers and shippers and significantly improve matching and operation efficiency via innovative technologies such as live pricing and real-time tracking, digital freight marketplace, brokerage support, transportation management, fleet management, and committed capacity solutions. For more information, please visit fr8technologies.com.</p>
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    <h3>Forward-Looking Statements</h3>
    <p>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. Fr8Tech’s and Fr8App Inc.’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.</p>
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Fr8Tech is accelerating its shift from an online broker to a software-first AI logistics platform, cutting staff and brokerage exposure while securing financing to fund restructuring. The company completed a $1.2 million Series C and refinanced debt into a single lender, aiming for meaningful cost savings and higher software margins as revenue scales in the USMCA region. Management targets profitability by late 2026 if execution meets plan.

Fr8Tech Advances AI-Native Transformation, Reduces Workforce and Raises Additional Capital

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Corporate Developments

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