Freight Technologies’ Fr8App Named BeatBox Beverages’ Number One Carrier for Cross Border Shipments

Rhea-AI Summary

Fr8Tech has been named the top carrier for BeatBox Beverages in cross-border shipments, owing to its efficient communication and tracking capabilities. The collaboration is already yielding positive results, with BeatBox reporting significant improvements in logistics. Rita Garza, BeatBox Operations Manager, praised Fr8App’s tools, like Fr8Radar, for enhancing their shipping process. CEO Javier Selgas highlighted the importance of this partnership as a testament to their innovative technology. However, Fr8Tech recently executed a 10-to-1 reverse stock split due to compliance issues with Nasdaq, bringing the outstanding shares to 3,277,513 and a market cap of approximately $7.8 million, which is significantly below analysts’ target price of $20 per share. This market capitalization is about 30.1% of the company's total revenue for 2022.

Positive

• BeatBox Beverages named Fr8Tech as their top carrier for cross-border shipments.
• BeatBox experienced significant improvements in logistics in just one month.
• CEO stresses the partnership highlights their innovative technology.

Negative

• Fr8Tech executed a 10-to-1 reverse share split to regain Nasdaq compliance.
• Market cap at $7.8 million is 88.1% below independent analysts' target price of $20 per share.
• Current market capitalization represents about 30.1% of TTM revenues for 2022.

Fr8App’s state of the art communication and tracking updates make cross border shipping a breeze for BeatBox

HOUSTON, April 24, 2023 (GLOBE NEWSWIRE) -- Freight Technologies, Inc. (Nasdaq: FRGT) (“Fr8Tech”), a technology company whose custom-developed Fr8App, an industry-leading freight-matching platform powered by AI and machine-learning, offers a real-time portal for B2B cross-border shipping and domestic shipping within the USMCA region, has been named BeatBox Beverages’ number one carrier for cross-border shipments. BeatBox benefits from Fr8App's exceptional communication and frequent updates, which improve the shipping process and offer unmatched levels of service and professionalism.

Rita Garza, BeatBox Operations Manager said, “In just one month of service, BeatBox has experienced a significant improvement in our cross border shipping process, thanks to Fr8App’s efficient and reliable services. Fr8App has been an invaluable resource in helping with BeatBox’s logistics needs, and their ability to assist with cross-border shipments during the night shift has been particularly impressive. In fact, BeatBox is already considering using Fr8App for their third shift in addition to our day-time shifts. Fr8App has been easy to work with and the tools they have available to us, such as Fr8Radar for tracking our shipments, have been a great value-add for our company. The team at BeatBox is thrilled with the results and looks forward to a deep and long term relationship with Fr8App.”

Javier Selgas, CEO of Fr8Tech said, “At Fr8Tech, we are committed to providing our clients with the best possible service and solutions for their shipping needs. Our business relationship with BeatBox Beverages is a testament to the power of our technology and the expertise of our team. We look forward to continuing to exceed their expectations with our innovative solutions and exceptional customer service.” Javier Selgas continued, “BeatBox is one of our new Shipper clients as alluded to in an earlier press release addressing the volume of new Shipper clients we signed up during the month of March 2023 and follows exciting news we already announced on our relationships with such companies as Whirlpool de Mexico, SRL de CV, and Kimberly Clark de Mexico, SAB de CV.”

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 on April 17, 2023 was 3,277,513. The adjusted capital value of the company, based on ordinary shares outstanding following the reverse split and the share price as of close of market on April 17, 2023 of $2.380, was approximately $7.8 million, a 88.1% discount to independent analyst’s target price for the company’s ordinary shares of $20 per share on a split-adjusted basis. The adjusted capital value of the company based on the closing price on April 17, 2023 of $7.8 million amounts to approximately 30.1% of TTM revenues for the year-ended December 31, 2022 of $25.9 million, and is 21.7% 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.

About BeatBox Beverages

United through a love of music and inspired by the entrepreneurial spirit of Austin, Texas, the founders of BeatBox Beverages set out to create something that could help everyone #PartyBetter. One year later, they made Shark Tank, walking away with the biggest investment the show had made at that time, $1 million from Mark Cuban, later adding on a team of industry veterans from InBev, MillerCoors, Deep Eddy, and Tito's Handmade Vodka, to name a few – who know how to develop, launch, and quickly grow authentic brands. Boasting a roster of investors including Mark Cuban, Rob Dyrdek as well as DJs Party Favor, Louis The Child, Good Times Ahead, and many others. BeatBox Beverages' reputation is secured as a company that creates products that drive incremental profit in high-growth categories with specific expertise in the Millennial target. For more information, please visit beatboxbeverages.com.

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 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, you 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.

 

FAQ

What recent achievement did Fr8Tech (FRGT) accomplish with BeatBox Beverages?

Fr8Tech was named BeatBox Beverages' top carrier for cross-border shipments.

How did BeatBox Beverages benefit from Fr8Tech's services in April 2023?

BeatBox reported significant improvements in their cross-border shipping process just one month into the partnership.

What is the current market cap of Fr8Tech (FRGT) following a reverse stock split?

Fr8Tech's market capitalization is approximately $7.8 million.

How does Fr8Tech's market cap compare to analysts' target prices?

Fr8Tech's market cap is about 88.1% below the independent analysts' target price of $20 per share.

What impact did the Nasdaq compliance issue have on Fr8Tech's shares?

Fr8Tech underwent a 10-to-1 reverse share split to regain compliance with Nasdaq share price requirements.