Freight Technologies Inc (FRGT) News & EventsFRGTNews & EventsFreight Technologies Inc

Freight Technologies Completes Transition and Raises $1.2M

Freight Technologies 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 $1.2M 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 $0.4M; $0.2M of which was incurred in the second quarter. These developments follow the Company's June 18th announcement of securing a $2.5M 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, the Company entered into a securities purchase agreement with an institutional investor 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 is expected to raise net cash proceeds of approximately $1,150,000 after deducting the estimated expenses payable by the Company. As of June 30, the Company held cash and cash equivalents of approximately $285K, billed and unbilled accounts receivable of approximately $3.5M, accounts payable and accrued expenses of approximately $2.5M, and short-term debt of approximately $2.5M.

Freight Technologies Launches FATF AI Transformation Framework

Freight Technologies announced the launch of the Fr8Tech AI Transformation Framework, FATF, a proprietary methodology that establishes the use of agentic AI across the Company's software development and enterprise operations. "Fr8Tech has spent years building proprietary AI capabilities with a clear objective: to create an operating system where software performs tasks and manages routines, and people provide judgment and drive strategy," said Javier Selgas, Chief Executive Officer of Freight Technologies. "The FATF is how we deliver on that vision at scale. We are monetizing our AI investments through the commercial launches of Zayren and Fleet Rocket, and through the underlying velocity and discipline the framework gives our entire organization. This is a foundational step in becoming a software-first logistics company with durable, long-term scalability."

Freight Technologies Transforms into AI-Driven Logistics Tech Company

Freight Technologies announced progress in its transformation from an OTR online freight broker to a software-first, AI-native logistics technology company. As part of the company's strategic transition, the company is exploring strategic alternatives for its online brokerage operations, including its potential sale, and has engaged with multiple interested parties as part of that process. The Board is overseeing the evaluation of strategic alternatives for the brokerage operations. The company's brokerage operations have served as the proving ground for the AI-enabled automation technologies. The company has determined that an AI-software business model represents the most direct path to deliver long-term value in the market. The company's enterprise customer relationships, technology infrastructure, and AI development pipeline are unaffected by the strategic review process. Zayren Pro, the premium SaaS tier of the company's AI pricing and carrier-matching platform, launched in January. Fr8Radar, Fleet Rocket's real-time geolocation module, now integrates 73 GPS network providers across the U.S. and Mexico. Fr8Tech believes its integrated software platform is well positioned to pursue the market opportunity of the U.S.-Mexico trade corridor.