Freight Technologies Enters into Securities Purchase Agreement with Fetch Compute to Acquire Tokens in One of the Largest Decentralized Artificial Intelligence Computing Networks

Rhea-AI Summary

Freight Technologies (NASDAQ: FRGT) has entered into a Securities Purchase Agreement to acquire $5.2 million of FET Tokens from Fetch Compute, in exchange for 2,311,248 Series A4 preferred shares. The FET Tokens power Fetch.ai, a decentralized machine learning platform aligned with Fr8Tech's vision for AI solutions in the Over-the-Road carrier and logistics markets.

This strategic move follows the company's recent launch of their AI Tendering Bot, designed to automate load tendering for shippers and freight brokers. The acquisition aims to strengthen Fr8Tech's balance sheet while enabling participation in Fetch.ai's decentralized AI ecosystem. The company plans to leverage this technology to provide clients with enhanced supply chain transparency and capabilities within the decentralized economy.

Positive

• Strategic acquisition of $5.2M in FET Tokens diversifies company's balance sheet
• Integration with Fetch.ai's decentralized AI ecosystem enhances technological capabilities
• Expansion of services into blockchain and AI technologies for logistics
• Recent launch of AI Tendering Bot shows technological advancement

Negative

• Potential shareholder dilution through issuance of 2,311,248 preferred shares
• Exposure to cryptocurrency market volatility through FET Token investment

Insights

Financial Analyst

Freight Technologies' $5.2 million acquisition of FET Tokens represents a significant strategic pivot that warrants investor attention. This transaction is particularly notable given FRGT's market cap of approximately $2.4 million - the token purchase exceeds twice the company's entire market valuation.

The deal structure is equally important: FRGT is issuing 2,311,248 Series A4 preferred shares rather than deploying cash reserves. This approach preserves immediate liquidity but introduces potential dilution considerations for existing shareholders, though the exact conversion terms aren't specified in the announcement.

This move positions FRGT in two emerging technology spheres simultaneously: cryptocurrency treasury management and decentralized AI computing networks. While innovative, this represents a substantial departure from traditional logistics technology and introduces new risk factors including cryptocurrency volatility, regulatory uncertainty, and integration challenges.

The announcement frames this as both treasury diversification and technological advancement, but investors should recognize this represents a meaningful shift in corporate strategy and risk profile beyond incremental innovation. The transaction's size relative to FRGT's market capitalization makes this an exceptionally material development that fundamentally transforms the company's financial structure and strategic direction.

Blockchain Technology Specialist

FRGT's acquisition of $5.2 million in FET Tokens marks a distinctive convergence of logistics and decentralized AI technology that goes beyond typical blockchain adoption in the transportation sector. Fetch.ai's platform specializes in autonomous economic agents and machine learning - technology that could theoretically enhance logistics operations through predictive analytics, automated negotiations, and supply chain optimization.

The development partnership component is particularly noteworthy, as it suggests FRGT isn't merely holding tokens as a treasury asset but intends to actively build applications utilizing Fetch.ai's infrastructure. This aligns with their recent AI Tendering Bot launch, potentially creating a technology stack that combines traditional logistics software with decentralized AI capabilities.

From a technical implementation perspective, Fetch.ai's decentralized infrastructure could address common logistics challenges including data silos, trust issues between partners, and computational resource limitations. However, the announcement lacks technical specifics on implementation timelines or development roadmaps.

While innovative, successful integration will require specialized blockchain and AI expertise that differs significantly from traditional logistics technology development. The value proposition hinges on FRGT's ability to effectively bridge these technological domains and deliver practical applications that justify this substantial investment in an emerging technology ecosystem.

- Creates asset diversification in addition to a crypto treasury and platform for Freight Technologies to introduce crypto to the Over-the-Road (OTR) carrier and logistics markets -

- Freight Technologies and Fetch.AI to collaborate on a development partnership to further blockchain and AI technologies in the logistics space -

HOUSTON, April 01, 2025 (GLOBE NEWSWIRE) -- Freight Technologies, Inc. (Nasdaq: FRGT; “Fr8Tech” or the “Company”), a logistics management innovation company, offering a diverse portfolio of technology-driven solutions, announced today it has entered into a Securities Purchase Agreement (the “Agreement”) for the acquisition of $5.2 million of FET Tokens from Fetch Compute, Inc. (“Fetch Compute”), in exchange for 2,311,248 Series A4 preferred shares of the Company, par value $0.0001 per share (“Preferred Shares”). The foregoing description does not purport to be complete and is qualified in its entirety by reference to the full text of the Company's current report on Form 8-K dated April 1, 2025, announcing the execution of the Agreement.

FET Tokens are the cryptocurrency that power Fetch.ai, a decentralized machine learning platform that aligns with Fr8Tech’s vision for scalable and secure AI solutions in the OTR carrier and logistics markets. Acquiring FET Tokens allows Fr8Tech to begin actively participating in Fetch.ai’s decentralized AI ecosystem, expanding its competitive advantage in the logistics industry.

“On the heels of the launch of our AI Tendering Bot, an innovative solution designed to automate and streamline the load tendering process for shippers and freight brokers, today’s token acquisition announcement brings further breadth and depth to Fr8Tech’s commitment to logistics innovation, while simultaneously strengthening and diversifying our balance sheet,” said Javier Selgas, the Chief Executive Officer of Fr8Tech. “With a FET Token treasury in place and by leveraging Fetch.ai’s empowered decentralized digital economy, our ultimate goal is to empower clients with real-time visibility and greater supply chain transparency to handle different activities inside the decentralized economy, whether it's improving supply chain logistics, maintaining solid record-keeping systems, executing computational tasks, or enabling transactional interactions.”

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; Waavely, a digital platform for efficient ocean freight booking and management of container shipments between North America and ports worldwide and Fleet Rocket a nimble, scalable and cost-effective Transportation Management System (TMS) for brokers, shippers, and other logistics operator 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 Houston, Texas. 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 Securities Exchange Commission.

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.

Fr8Tech Contact:
Jason Finkelstein
IGNITION Investor Relations
investors@fr8technologies.com

FAQ

What is the value of FET Tokens acquired by Freight Technologies (FRGT)?

Freight Technologies acquired $5.2 million worth of FET Tokens from Fetch Compute.

How many preferred shares did FRGT issue for the FET Token purchase?

FRGT issued 2,311,248 Series A4 preferred shares in exchange for the FET Tokens.

What is the purpose of FRGT's FET Token acquisition?

The acquisition allows FRGT to participate in Fetch.ai's decentralized AI ecosystem and strengthen its position in logistics innovation while diversifying its balance sheet.

How will the FET Token acquisition benefit FRGT's logistics operations?

It will enable real-time visibility and supply chain transparency, improving logistics operations through blockchain and AI technologies in the decentralized economy.