Freight Technologies, a technology-centric logistics company offering a diversified portfolio of AI software solutions designed to address key inefficiencies in the supply chain, announced that it has completed additional steps in its transition from an online freight broker to a pure-play, software and AI logistics technology company. These steps include a further reduction in workforce, a reduction of certain brokerage operations, and raising $1.2 million through the issuance of additional Series C Preferred Shares. The Company expects these actions to meaningfully lower operating expenses, reduce outstanding debt, and support a higher-margin business model as Fr8Tech continues to scale its software solutions.
As previously announced, Fr8Tech is exploring strategic alternatives for its online brokerage operations, including a potential sale, and has engaged with multiple interested parties as part of that process. Certain Fr8Fleet dedicated capacity operations were successfully transitioned to other operators in the second quarter of 2026. Ongoing discussions regarding Fr8App over-the-road, spot market and Waavely ocean container brokerage services remain exploratory in nature. No assurance can be given that the exploration of strategic alternatives will result in any transaction. In connection with this ongoing process, and consistent with the Company’s deliberate pivot away from brokerage operations, Fr8Tech has taken further action to reduce the scope and expenses of its brokerage business.
The Company completed significant workforce reductions in the second quarter of 2026, concentrated primarily within its brokerage operations. These actions are expected to materially reduce the Company’s ongoing operating expenses and headcount-related costs, while preserving enterprise customer relationships, technology infrastructure, and its software and AI development pipeline that support Fr8Tech’s SaaS and AI product offerings. The Company expects to substantially complete its restructuring by the end of the third quarter of 2026 and to incur severance and other restructuring costs of approximately $0.4 million; $0.2 million of which was incurred in the second quarter.
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These developments follow the Company’s June 18th announcement of securing a $2.5 million loan, the net proceeds of which were used to repay in full and terminate the Company’s prior credit facility. The new loan bears interest at 10.0% per annum, matures on June 17, 2027, and consolidates Fr8Tech’s debt structure under a single lender relationship. Further, on July 14, 2026, the Company entered into a securities purchase agreement with an institutional investor (the “Buyer”), pursuant to which the Company agreed to sell to the Buyer 1,200,000 Series C preferred shares, par value $0.0001 per share, of the Company, for an aggregate purchase price of $1,200,000 (the “Offering”). The Offering is expected to raise net cash proceeds of approximately $1,150,000 after deducting the estimated expenses payable by the Company. The Company intends to use the net cash proceeds from the Offering for its ongoing restructuring, working capital, and general corporate purposes.
As of June 30, 2026, the Company held cash and cash equivalents of approximately $285 thousand, billed and unbilled accounts receivable of approximately $3.5 million, accounts payable and accrued expenses of approximately $2.5 million, and short-term debt of approximately $2.5 million. These figures are unaudited and have not been reviewed by the Company’s auditors.
“The actions we have taken in the second quarter reflect a deliberate and disciplined approach to reshaping our cost base,” said Don Quinby, Chief Financial Officer of the Company. “By establishing a leaner cost structure and accelerating the transition away from brokerage operations, we are building the financial foundation from which Fr8Tech can scale its recurring, higher-margin SaaS and AI-based revenue streams and creating a sustainable path toward profitability.”
“Together, these actions mark a decisive and disciplined step in our transformation into a pure-play, software-first technology company,” said Javier Selgas, Chief Executive Officer of the Company. “By reducing our workforce further, scaling back brokerage operations, and consolidating our debt, we are systematically removing operational complexity and financial friction from the business, and simultaneously focusing our capital and our talent on the commercialization of our software platform. Fr8Tech is building an AI-powered platform anchored by Fleet Rocket, where AI agents and automation tools are designed to streamline freight operations from tendering to delivery across the USMCA corridor.”
SOURCE: GlobeNewswire