Freight App, Inc. Reports Preliminary Revenue Increased 103% and 197% for the Three- and Nine-Month Periods Ended September 30, 2021, Respectively

Rhea-AI Summary

Hudson Capital (NASDAQ: HUSN) announced a merger agreement with Freight App, Inc. (Fr8App), a logistics platform focused on US-Mexico shipping. Fr8App reported preliminary revenues of approximately $5.6 million for Q3 2021, a 103% increase year-over-year, and $16.2 million for the first nine months, up 197%. The CEO noted that the logistics environment is challenging due to truck driver shortages and rising diesel prices, making Fr8App's solutions increasingly relevant. The merger process will involve SEC filings and shareholder approvals.

Positive

• Fr8App's Q3 2021 revenue reached approximately $5.6 million, up 103% from the prior year.
• Year-to-date revenues for Fr8App were approximately $16.2 million, marking a 197% increase.
• The merger is expected to enhance Hudson Capital's position in the transportation logistics sector.

Negative

• The logistics environment is impacted by truck driver shortages and rising diesel prices, posing operational challenges.
• Potential risks exist regarding the completion of the merger, including regulatory approvals and shareholder consent.

NEW YORK, Oct. 14, 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, released preliminary revenue for the three- month and nine-month periods ended September 30, 2021.

Javier Selgas, CEO of Fr8App, said, “In the third quarter, we more than doubled our revenues in the same quarter last year, with sales increased by 103% over the same period last year. On a year-to-date basis, we have nearly tripled our sales in comparison to last year. The environment in the third quarter this year was characterized by commercial truck driver shortages and logistics chain constraints with decreasing returns from long haul drivers due to escalating diesel prices. Our carrier customers are finding our platform even more relevant, as managing fleets efficiently is becoming increasingly important to the ongoing success of their overall operations. Our shipper base values the competitive cost and level of service we can secure through our growing carrier base and carriers value our ability to help make their operations more efficient and avoid the high cost of driving ‘dead miles’ or empty trucks.”

Third quarter of 2021 preliminary revenues were approximately $5.6 million, up 103% or over 2X compared to approximately $2.7 million in the prior year period. Preliminary revenues for the nine-month period ended September 30, 2021, were approximately $16.2 million, up 197% or nearly 3X compared to approximately $5.5 million for the prior year period.

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, September 1, 2021, and October 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 were Fr8App's revenues for Q3 2021?

Fr8App reported approximately $5.6 million in revenues for Q3 2021, a 103% increase from the previous year.

How much did Fr8App's revenue grow year-to-date in 2021?

Fr8App's revenue for the first nine months of 2021 was approximately $16.2 million, up 197% compared to the same period last year.

What is the status of the merger between Hudson Capital and Fr8App?

Hudson Capital has signed a definitive merger agreement with Fr8App and is in the process of filing necessary materials with the SEC.

What challenges does Fr8App face in the logistics market?

Fr8App is currently facing challenges such as truck driver shortages and increased diesel prices affecting logistics operations.

What potential risks could affect the merger between Hudson Capital and Fr8App?

Risks include regulatory approvals, shareholder consent, and potential disruptions due to external economic factors.