Freight App, Inc. Provides 2021 Revenue Guidance of $22 Million to $23 Million

Rhea-AI Summary

Hudson Capital Inc. (NASDAQ: HUSN) announced a definitive merger agreement with Freight App, Inc. (Fr8App), a logistics technology platform focused on US-Mexico cross-border shipping. Fr8App expects 2021 revenues between $22 million and $23 million, reflecting a 140% increase year-over-year. Key accomplishments include growing loads carried to nearly 25,000 and tripling shipper clients to 395. Fr8App aims to leverage public trading to explore further growth opportunities in 2022. Shareholders are encouraged to review merger materials filed with the SEC for important information.

Positive

• Projected 2021 revenue between $22M and $23M, up 140% year-over-year.
• Increased loads carried to almost 25,000 from 9,200 in 2020.
• Tripled shipper client count to 395, up from 130 in 2020.
• Expanded carrier partner base to over 2,400, significantly enhancing logistics capabilities.

Negative

• Potential risks related to the completion of the merger, including shareholder approval and regulatory issues.
• Ongoing impacts from COVID-19 and commercial truck driver shortages could affect future operations.

NEW YORK, Dec. 09, 2021 (GLOBE NEWSWIRE) -- Hudson Capital Inc. (NASDAQ: HUSN) (Hudson Capital) announced that Freight App, Inc. (Fr8App), a North American transportation logistics technology platform company focused on US-Mexico cross-border shipping with which Hudson Capital has signed a definitive Merger Agreement, provided full year 2021 revenue guidance and company updates.

Javier Selgas, CEO of Fr8Hub, said, “2021 has been a successful year of transformation, including our numerous transportation logistics innovations, which deliver compelling value adds for both of our shipper clients and carrier partners.

“In the fourth quarter of 2021, the logistics market began to improve, overcoming a very challenging environment including the adverse effects of COVID 19, commercial truck driver shortages, diesel price shocks, and a severely constrained commercial logistics chain throughout North America. Building upon our revenue for the first nine months of 2021 of $16.2 million, we expect full year 2021 revenue to grow to between $22 million and $23 million, which represents an increase of at least 140% over 2020. We anticipate becoming part of a publicly traded company in 2022, which we expect will provide us with additional organic and inorganic opportunities. We are proud of our numerous achievements that position us to grow and drive shareholder value in 2022 and beyond.”

Select Accomplishments Year-to-date through November 2021    

• Grew loads carried to almost 25,000, up from approximately 9,200 for 2020.
• Increased average miles travelled by servicing more direct shipments to approximately 2,300 from approximately 1,500 in 2020.
• Increased lanes operated by 500% year over year.
• Tripled shipper client count to 395, up from 130 at the end of 2020.
• Broadened the industries served, which now include consumer goods, packaging, automotive, raw materials, manufacturing, and logistics.
• Renewed agreements with all top shipper clients.
• Expanded the carrier partner base to over 2,400 from 1,700 at the end of 2020.
• Launched numerous major new product offerings: broker portal, Carta Porte compliance with cross-border reporting requirements, EDI interfaces v1.0 and v2.0, internal pricing tool, offer manager, and automated onboarding.
• Formed six collaboration agreements with key players in the logistics industry yielding integrations, including RC Control, P44, DAT, RMIS, Dangil Distribution Center, and Mesilla Valley Transportation.
• Invested in human capital, hiring engineers and sales team members to support the increasing foothold in Mexico and the strategic expansion in the US and Canada.
• Strengthened executive leadership with key additions at various levels across the company, including the new Chief Operating Officer.
  

About Freight App, Inc.
Freight App, Inc. (Fr8App), formerly known as FreightHub, Inc., makes shipping simple, transparent, and efficient. A transportation logistics technology platform company, Fr8App focuses on truckload freight for domestic and cross-border markets in Mexico, the US and Canada. As an innovative digital freight marketplace, broker, transportation management system (TMS) and public API, Fr8App uses its proprietary technology platform to connect carriers and shippers that significantly improves matching and operation efficiency via innovative technologies such as live pricing and real-time tracking.

About Hudson Capital Inc.
Incorporated in 2014, Hudson Capital Inc. (formerly known as China Internet Nationwide Financial Services Inc. (NASDAQ: HUSN)) commenced its business by providing financial advisory services to small and medium size companies. The traditional business segments include commercial payment advisory, intermediary bank loan advisory and international corporate financing advisory services which help clients to meet their commercial payment and investment needs. For more information, about Hudson Capital, please see the documents filed by Hudson Capital with the SEC at www.sec.gov.

In connection with the proposed merger, Hudson Capital intends to file relevant materials with the Securities and Exchange Commission (the “SEC”), including a Registration Statement on Form S-4 (the “Form S-4”) which was filed with the SEC on November 12, 2020, as amended on December 31, 2020, February 8, 2021, May 18, 2021, June 22, 2021, August 4, 2021 and September 1, 2021, and includes and serves as a proxy statement/prospectus for Hudson Capital’s shareholders and a prospectus for Fr8App’s stockholders. Promptly after the Form S-4 is declared effective by the SEC, Hudson Capital will mail the definitive proxy statement/prospectus and a proxy card to each shareholder entitled to vote at the special meeting on the merger and the other proposals set forth in the proxy statement. SHAREHOLDERS OF HUDSON CAPITAL ARE URGED TO READ THESE MATERIALS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE MERGER THAT HUDSON CAPITAL WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT HUDSON CAPITAL, FREIGHTAPP AND THE MERGER. The definitive proxy statement/prospectus and other relevant materials in connection with the merger (when they become available), and any other documents filed by Hudson Capital with the SEC, may be obtained free of charge at the SEC’s website (www.sec.gov).

Participants in the Solicitation
Hudson Capital and its directors and executive officers may be deemed participants in the solicitation of proxies from Hudson Capital’s shareholders with respect to the merger. A list of the names of those directors and executive officers and a description of their interests in Hudson Capital are included in the prospectus/proxy statement for the proposed merger and are available at www.sec.gov. Additional information regarding the interests of such participants will be contained in the prospectus/proxy statement for the proposed merger when available. Information about Hudson Capital’s directors and executive officers and their ownership of ordinary shares of Hudson Capital is set forth in Hudson Capital’s Annual Report on Form 20-F filed with the Securities and Exchange Commission on May 5, 2021. These documents can be obtained free of charge from the sources indicated above.

Fr8App and its directors and executive officers may also be deemed to be participants in the solicitation of proxies from the shareholders of Hudson Capital in connection with the proposed merger. A list of the names of such directors and executive officers and information regarding their interests in the proposed merger are included in the prospectus/proxy statement for the proposed merger, and are available at www.sec.gov.

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. Hudson Capital’s 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, Hudson Capital’s and Fr8App’s expectations with respect to future performance and anticipated financial impacts of the proposed acquisition, the satisfaction of the closing conditions to the proposed acquisition, and the timing of the completion of the proposed acquisition.

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 Hudson Capital’s and Fr8App’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the occurrence of any event, change, or other circumstances that could give rise to the termination of the definitive merger agreement (the “Agreement”); (2) the outcome of any legal proceedings that may be instituted against Hudson Capital or Fr8App following the announcement of the Agreement and the transactions contemplated therein; (3) the inability to complete the proposed acquisition, including due to failure to obtain approval of the shareholders of Hudson Capital and stockholders of Fr8App, certain regulatory approvals, or satisfy other conditions to closing in the Agreement; (4) the occurrence of any event, change, or other circumstance that could give rise to the termination of the Agreement or could otherwise cause the transaction to fail to close; (5) the impact of COVID-19 pandemic on Fr8App’s business and/or the ability of the parties to complete the proposed acquisition; (6) the inability to obtain or maintain the listing of Hudson Capital’s shares of common stock on Nasdaq following the proposed merger; (7) the risk that the proposed acquisition disrupts current plans and operations as a result of the announcement and consummation of the proposed merger; (8) the ability to recognize the anticipated benefits of the proposed merger, which may be affected by, among other things, competition, the ability of Fr8App to grow and manage growth profitably, and retain its key employees; (9) costs related to the proposed merger; (10) changes in applicable laws or regulations; (11) the possibility that Hudson Capital or Fr8App may be adversely affected by other economic, business, and/or competitive factors; (12) risks relating to the uncertainty of the projected financial information with respect to Fr8App; (13) risks related to the organic and inorganic growth of Fr8App’s business and the timing of expected business milestones; and (14) other risks and uncertainties indicated from time to time in the prospectus/proxy statement on the Form S-4, relating to the proposed merger, including those under “Risk Factors” therein, to be filed by Hudson Capital and in Hudson Capital’s other filings with the SEC. Hudson Capital 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. Hudson Capital and Fr8App caution readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Hudson Capital 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.

No Offer or Solicitation
This press release shall not constitute a solicitation of a proxy, consent, or authorization with respect to any securities or in respect of the proposed merger. This press release shall also not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or an exemption therefrom.

Fr8App Contact:
Moriah Shilton or Kirsten Chapman, LHA Investor Relations, fr8app@lhai.com, 415.433.3777

Hudson Capital Contact:
Hon Man Yun, Chief Financial Officer, man@hudsoncapitalusa.com, (852) 98047102

FAQ

What are Fr8App's revenue projections for 2021?

Fr8App anticipates 2021 revenues between $22 million and $23 million, marking a 140% increase over 2020.

How many loads did Fr8App carry in 2021?

Fr8App carried nearly 25,000 loads in 2021, significantly up from approximately 9,200 in 2020.

What is the strategic importance of the merger for Hudson Capital?

The merger with Fr8App is expected to create additional growth opportunities and drive shareholder value in 2022 and beyond.

What risks does Hudson Capital face regarding the merger?

Hudson Capital faces risks such as shareholder approval, regulatory hurdles, and operational disruptions due to the merger.