ShiftPixy, Inc. Announces Reverse Stock Split Effective Date

Rhea-AI Summary

ShiftPixy, Inc. (Nasdaq: PIXY), a Florida-based national staffing enterprise, has announced a one-for-fifteen (1:15) reverse stock split of its issued and outstanding shares of Common Stock. The reverse split is scheduled to take effect at market open on Nasdaq on October 14, 2024.

ShiftPixy specializes in designing, managing, and selling access to a disruptive, revolutionary platform that facilitates employment in the rapidly growing Gig Economy. This reverse stock split decision is a significant corporate action that will impact the company's share structure and potentially its market valuation.

Positive

• Potential to meet Nasdaq listing requirements and maintain listing status
• May attract institutional investors who have minimum share price requirements
• Could improve the stock's marketability and liquidity

Negative

• Reduction in the total number of outstanding shares
• Possible short-term stock price volatility
• Potential negative market perception of reverse splits

Insights

Financial Analyst

ShiftPixy's announcement of a 1:15 reverse stock split is a significant move that warrants attention. This decision typically indicates the company is struggling to maintain Nasdaq's minimum bid price requirement of $1 per share. While the split artificially boosts the stock price, it doesn't change the company's underlying value or market capitalization.

Investors should be cautious as reverse splits often signal financial distress. It's important to examine ShiftPixy's recent financial performance, cash position and growth prospects in the Gig Economy staffing sector. The split may temporarily prevent delisting, but without fundamental improvements in the business, it's merely a cosmetic fix that could lead to further dilution if the stock price continues to decline post-split.

Market Research Analyst

The reverse stock split announcement reflects broader challenges in the Gig Economy staffing sector. ShiftPixy's struggle to maintain its Nasdaq listing suggests its revolutionary platform might not be gaining the expected traction. This could indicate either market saturation or a shift in gig worker preferences.

Investors should consider the company's competitive positioning and its ability to adapt to changing market dynamics. The gig economy landscape is evolving rapidly, with larger players like Uber and DoorDash dominating mindshare. ShiftPixy's performance post-split will be a critical indicator of market confidence in its business model and growth potential in this challenging environment.

MIAMI--(BUSINESS WIRE)-- ShiftPixy, Inc. (Nasdaq: PIXY) (“ShiftPixy” or the “Company”), a Florida-based national staffing enterprise which designs, manages, and sells access to a disruptive, revolutionary platform that facilitates employment in the rapidly growing Gig Economy, today announced a one-for-fifteen (1:15) reverse split of the Company’s issued and outstanding shares of Common Stock, which will be effective at market open on Nasdaq on October 14, 2024.

About ShiftPixy

ShiftPixy is a disruptive human capital services enterprise, revolutionizing employment in the Gig Economy by delivering a next-gen platform for workforce management that helps businesses with shift-based employees navigate regulatory mandates, minimize administrative burdens and better connect with a ready-for-hire workforce. With expertise rooted in management’s more than 25 years of workers’ compensation and compliance programs experience, ShiftPixy adds a needed layer for addressing compliance and continued demands for equitable employment practices in the growing Gig Economy.

Forward Looking Statements

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements. These forward-looking statements include, among other things, statements regarding the anticipated use of proceeds from the offering and the anticipated closing date of the offering. Although such forward-looking statements are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate. If any of the risks or uncertainties, including those set forth below, materialize or if any of the assumptions proves incorrect, the results of the Company, could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties include, but are not limited to, risks associated with the nature of the Company’s business model; the Company’s ability to execute its vision and growth strategy; the Company’s ability to attract and retain clients; the Company’s ability to assess and manage risks; changes in the law that affect the Company’s business and its ability to respond to such changes and incorporate them into its business model, as necessary; the Company’s ability to insure against and otherwise effectively manage risks that affect its business; competition; reliance on third-party systems and software; the Company’s ability to protect and maintain its intellectual property; and general developments in the economy and financial markets. These and other risks are discussed in the Company’s filings with the SEC, including, without limitation, its Annual Report on Form 10-K, and its periodic and current reports on Form 10-Q and Form 8-K. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, except as required by applicable securities laws. The information in this press release shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and will not be deemed an admission as to the materiality of any information that is required to be disclosed solely by Regulation FD. Further information on these and other factors that could affect the financial results of the Company, is included in the filings we make with the SEC from time to time. These documents are available on the "SEC Filings" subsection of the "Investor Information" section of the Company’s website at https://ir.shiftpixy.com, or directly from the SEC’s website at https://www.sec.gov.

Consistent with the SEC’s April 2013 guidance on using social media outlets like Facebook and Twitter to make corporate disclosures and announce key information in compliance with Regulation FD, the Company is alerting investors and other members of the general public that the Company will provide updates on operations and progress required to be disclosed under Regulation FD through its social media on Facebook, Twitter, LinkedIn and YouTube. Investors, potential investors, shareholders and individuals interested in the Company are encouraged to keep informed by following us on Facebook, Twitter, LinkedIn and YouTube.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240920380774/en/

InvestorRelations@shiftpixy.com

800.475.3655

Source: ShiftPixy

FAQ

What is the reverse stock split ratio announced by ShiftPixy (PIXY)?

ShiftPixy (PIXY) announced a one-for-fifteen (1:15) reverse stock split of its issued and outstanding shares of Common Stock.

When will ShiftPixy's (PIXY) reverse stock split take effect?

The reverse stock split for ShiftPixy (PIXY) will be effective at market open on Nasdaq on October 14, 2024.

What does ShiftPixy (PIXY) do as a company?

ShiftPixy (PIXY) is a Florida-based national staffing enterprise that designs, manages, and sells access to a platform facilitating employment in the Gig Economy.

Why might ShiftPixy (PIXY) be implementing a reverse stock split?

While not explicitly stated in the PR, companies often implement reverse stock splits to increase share price, meet exchange listing requirements, and potentially attract institutional investors.