Hudson Capital and Freight App, Inc. Take Steps to Prepare for Anticipated Merger
Hudson Capital (NASDAQ: HUSN) is advancing its merger with Freight App, Inc. (Fr8App), focusing on logistics technology for US-Mexico cross-border shipping. CEO Warren Wang expressed excitement over Fr8App's growth in shipper relationships and carrier base, alongside improving financial performance. Fr8App reported record revenue and operational metrics in 2021, enhancing its potential for growth post-merger. The merger's closing is pending customary conditions and regulatory approval, with financial filings submitted to the SEC.
- Fr8App reported record revenue and operational metrics in 2021, indicating strong financial health.
- The merger with Fr8App could expand Hudson Capital's market presence in logistics technology and US-Mexico shipping.
- The merger completion is subject to regulatory approval and customary closing conditions, posing uncertainty.
- Potential risks include legal proceedings and market competition affecting the merger's success.
NEW YORK, Jan. 24, 2022 (GLOBE NEWSWIRE) -- Hudson Capital Inc. (NASDAQ: HUSN) (Hudson Capital) moves forward in its process to merge with Freight App, Inc. (Fr8App).
“We continue to be very excited to merge with Fr8App,” stated Warren Wang, Chairman and CEO of Hudson Capital. “As a leader in logistics technology, Fr8App continues to launch new solutions, add shipper relationships, increase its carrier base, and improve its financial performance. By providing compelling solutions to carrier and shipper partners with a focus on US-Mexico cross-border shipping, Fr8App is positioned to capture increasing share of its large market opportunity.”
CEO of Fr8App Javier Selgas said, “In 2021, we reported record levels of revenue, loads carried, average miles, shipper and carrier count. We are working diligently with Hudson to close the merger and look forward to being part of a public company, which will enhance our opportunity to grow our business.”
On January 20, 2022, in anticipation of the upcoming merger, Hudson Capital filed with the Securities and Exchange Commission (the “SEC”) a Form 6-K containing unaudited pro forma condensed combined financial information, Fr8App’s audited financial statements for the fiscal years ended December 31, 2020 and 2019, and unaudited financial statements for the six months ended June 30, 2021. The closing of the merger remains subject to customary closing conditions as well as regulatory approval.
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 has filed on a Form 6-K on December 14, 2021 and December 30, 2021.
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 regulatory approval by Nasdaq, 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 ordinary shares 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 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:
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
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