Freight Technologies Advances Transformation to Accelerate Innovation, Reduce Costs, and Drive Growth
Freight Technologies (FRGT) announced strategic updates focusing on technological innovation and cost reduction. The company is set to launch its Transportation Management System (TMS) in February 2025, which will serve as a digital command center for logistics teams, enabling real-time shipment tracking, carrier selection, and route management.
As part of its transformation, FRGT has implemented a 20% workforce reduction to streamline operations and reduce costs. The company aims to achieve profitability on an adjusted EBITDA basis by the end of 2025. Recent developments include a $3 million private placement of convertible preferred stock and renewal of a multi-year logistics services agreement with Kimberly-Clark de México.
Freight Technologies (FRGT) ha annunciato aggiornamenti strategici focalizzati su innovazione tecnologica e riduzione dei costi. L'azienda prevede di lanciare il suo Transportation Management System (TMS) a febbraio 2025, che fungerà da centro di comando digitale per i team logistici, consentendo il tracciamento in tempo reale delle spedizioni, la selezione dei vettori e la gestione dei percorsi.
Come parte della sua trasformazione, FRGT ha attuato una riduzione del personale del 20% per semplificare le operazioni e contenere i costi. L'azienda punta a raggiungere la redditività su base EBITDA rettificato entro la fine del 2025. Tra gli sviluppi recenti c'è un collocamento privato di 3 milioni di dollari di azioni privilegiate convertibili e il rinnovo di un contratto pluriennale per i servizi logistici con Kimberly-Clark de México.
Freight Technologies (FRGT) anunció actualizaciones estratégicas centradas en la innovación tecnológica y la reducción de costos. La empresa planea lanzar su Sistema de Gestión de Transporte (TMS) en febrero de 2025, que servirá como un centro de comando digital para los equipos de logística, permitiendo el seguimiento de envíos en tiempo real, selección de transportistas y gestión de rutas.
Como parte de su transformación, FRGT ha implementado una reducción del 20% de la fuerza laboral para optimizar operaciones y reducir costos. La empresa busca alcanzar la rentabilidad en términos de EBITDA ajustado para finales de 2025. Entre los desarrollos recientes se incluye un colocación privada de 3 millones de dólares de acciones preferentes convertibles y la renovación de un acuerdo de servicios logísticos de varios años con Kimberly-Clark de México.
Freight Technologies (FRGT)는 기술 혁신과 비용 절감을 중심으로 한 전략적 업데이트를 발표했습니다. 이 회사는 2025년 2월에 운송 관리 시스템 (TMS)를 출시할 예정이며, 이는 물류 팀을 위한 디지털 지휘 센터 역할을 하여 실시간으로 배송 추적, 운송업체 선택 및 경로 관리를 가능하게 합니다.
변화의 일환으로 FRGT는 운영을 간소화하고 비용을 줄이기 위해 20% 인력 감축을 실시했습니다. 이 회사는 2025년 말까지 조정된 EBITDA 기준으로 수익성을 달성하는 것을 목표로 하고 있습니다. 최근 개발 사항으로는 전환 가능한 우선주 방식으로 300만 달러의 사모 배치와 Kimberly-Clark de México와의 다년간 물류 서비스 계약 갱신이 포함됩니다.
Freight Technologies (FRGT) a annoncé des mises à jour stratégiques axées sur l'innovation technologique et la réduction des coûts. L'entreprise prévoit de lancer son Système de Gestion des Transports (TMS) en février 2025, qui servira de centre de commandement numérique pour les équipes logistiques, permettant le suivi des expéditions en temps réel, la sélection des transporteurs et la gestion des itinéraires.
Dans le cadre de sa transformation, FRGT a mis en œuvre une réduction de 20 % de sa main-d'œuvre pour rationaliser les opérations et réduire les coûts. L'objectif de l'entreprise est d'atteindre la rentabilité sur une base EBITDA ajustée d'ici la fin de 2025. Parmi les développements récents, on trouve un placement privé de 3 millions de dollars d'actions privilégiées convertibles et le renouvellement d'un contrat de services logistiques pluriannuel avec Kimberly-Clark de México.
Freight Technologies (FRGT) hat strategische Updates vorgestellt, die sich auf technologische Innovation und Kostensenkung konzentrieren. Das Unternehmen plant die Einführung seines Transportmanagementsystems (TMS) im Februar 2025, das als digitales Kommandocenter für Logistikteams fungieren wird, um die Echtzeitverfolgung von Sendungen, die Auswahl von Transporteuren und das Routenmanagement zu ermöglichen.
Im Rahmen seiner Transformation hat FRGT eine 20%ige Reduzierung der Belegschaft umgesetzt, um die Abläufe zu optimieren und Kosten zu senken. Das Unternehmen strebt an, bis Ende 2025 auf Basis des bereinigten EBITDA rentabel zu sein. Zu den jüngsten Entwicklungen gehört eine 3-Millionen-Dollar-Private-Placement von wandelbaren Vorzugsaktien sowie die Verlängerung eines mehrjährigen Logistikdienstleistungsvertrags mit Kimberly-Clark de México.
- Launch of new Transportation Management System (TMS) platform in February 2025
- Secured $3 million through private placement of convertible preferred stock
- Renewed multi-year agreement with Kimberly-Clark de México
- Expected cost reduction through 20% workforce reduction
- Targeting adjusted EBITDA profitability by end of 2025
- 20% workforce reduction indicates operational challenges
- Current unprofitability requiring significant restructuring
- Potential dilution from convertible preferred stock offering
Insights
Fr8Tech's strategic transformation announcement reveals a calculated pivot towards technology-focused operations, marked by two significant developments: the imminent TMS launch and a 20% workforce reduction. This restructuring signals a critical inflection point for the
The 20% workforce reduction represents a decisive move to optimize operational efficiency. For a company of this size, this could translate to annual savings of approximately
The TMS launch timing is strategically significant, as it coincides with increasing market demand for logistics automation solutions. The renewal of the Kimberly-Clark México contract validates the platform's value proposition and could serve as a reference customer for enterprise-level sales. However, the TMS market is highly competitive, dominated by established players like Manhattan Associates and Blue Yonder.
Three critical factors will determine success:
- Speed of customer adoption for the new TMS platform
- Ability to maintain service quality with reduced workforce
- Execution of the transition from service-heavy to technology-centric operations
While the adjusted EBITDA profitability target by year-end 2025 appears ambitious, the combination of cost reductions and potential TMS revenue scaling makes it achievable, though likely in the latter part of the projected timeline.
-Fr8Tech’s Transportation Management System (TMS) to formally launch in February
-Company announces workforce reduction to create operational efficiencies and align resources
HOUSTON, Feb. 07, 2025 (GLOBE NEWSWIRE) -- Freight Technologies, Inc. (Nasdaq: FRGT) (“Fr8Tech'' or “Freight Technologies'' or the “Company”), a logistics management innovation company, offering a diverse portfolio of technology-driven solutions that address distinct challenges within the supply chain ecosystem, today announced significant updates in its strategic evolution as a technology-centric enterprise.
Fr8Tech continues to advance its transformational focus on technological innovation to enhance and expand current operations with its valued customers, as it builds upon the commercialization of its Transportation Management System (TMS) software, scheduled to formally launch later this month. Fr8Tech’s TMS serves as an in-house digital command center for logistics teams, enabling them to oversee and optimize the movement of goods with enhanced precision. It allows companies to track shipments in real-time, select the most suitable carriers, administer delivery routes, communicate with drivers, manage documentation, and integrate with both inventory and billing systems. By automating these processes and delivering actionable insights, our TMS can significantly reduce costs and risks, improve decision-making and operational efficiency, and elevate overall supply chain management performance.
"Our commitment to evolving into a leading technology company is evident with the launch of our game-changing TMS," said Javier Selgas, CEO of Freight Technologies. "By embracing automation and reducing manual processes, we are not only enhancing our service offerings but also paving the way toward sustainable profitability. This transformation allows us to better serve our customers and deliver increased value to our shareholders."
As part of this transformation, the Company has conducted a comprehensive, organization-wide analysis to determine the appropriate team size and structure. Following this review, the Company has completed a headcount restructuring process aimed at streamlining operations and reducing costs. This includes a
Other recent developments further underscore Fr8Tech's dedication to this strategic direction. Earlier this year, the Company successfully completed a
About Freight Technologies Inc.
Freight Technologies (Nasdaq: FRGT) (“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; and Waavely, a digital platform for efficient ocean freight booking and management of container shipments between North America and ports worldwide. Together, each product is interconnected within a unified 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, brokerage support, transportation management, fleet management, and committed capacity solutions. The company is headquartered in Monterrey, Mexico. For more information, please visit 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. 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. 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 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 Fr8Tech’s and Fr8App Inc.’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the inability to obtain or maintain the listing of Fr8Tech’s ordinary shares on Nasdaq; (2) changes in applicable laws or regulations; (3) the possibility that Fr8Tech or Fr8App Inc. may be adversely affected by other economic, business and/or competitive factors; (4) risks relating to the uncertainty of the projected financial information with respect to Fr8App Inc.; (5) risks related to the organic and inorganic growth of Fr8App Inc.’s business and the timing of expected business milestones; and (6) other risks and uncertainties identified, including those under “Risk Factors,” to be filed in Fr8Tech other filings with the SEC.
Fr8Tech 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. Fr8Tech and Fr8App Inc. caution readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Fr8Tech and Fr8App Inc. 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.
FAQ
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