MIAMI - ShiftPixy, Inc. (NASDAQ: PIXY), a staffing enterprise operating within the Gig Economy, has declared the pricing of its recent securities offering. The company is offering 1,176,470 units for $4.25 each, with gross proceeds expected to reach around $5 million. The offering, priced at-the-market under Nasdaq rules, includes both common stock and warrants, with the latter being immediately exercisable at the same price of $4.25 and valid for five years.
Scheduled to close on March 21, 2024, this capital raise is intended to bolster ShiftPixy's general corporate funds, including working capital. A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the sole placement agent for the transaction.
In tandem with this offering, ShiftPixy has renegotiated terms with an existing investor to adjust the exercise price of outstanding warrants from previous offerings in July 2022 and July 2023, as well as from October 2023, to $4.25 per share. These changes are contingent upon either stockholder approval or a set timeframe after the issuance of the October 2023 warrants, with the exercise price aligning with the minimum price defined by Nasdaq if stockholder approval is not secured.
This financial move follows the company's strategy to manage workforce demands and regulatory compliance within the Gig Economy, leveraging over two decades of experience in workers' compensation and compliance programs.
ShiftPixy's platform is designed to connect businesses with shift-based employees, streamlining administrative processes and compliance with employment laws.
The information in this article is based on a press release.
InvestingPro Insights
ShiftPixy, Inc. (NASDAQ: PIXY) has recently been in the financial news due to its securities offering aimed at raising capital. In light of this development, it's important to consider the company's financial metrics and market performance for a comprehensive understanding of its current position.
InvestingPro Data indicates that as of Q1 2024, ShiftPixy has a market capitalization of approximately 36.7 million USD. The company's revenue for the last twelve months stands at 15.64 million USD, which represents a significant decline of 51.63%. This downturn in revenue is mirrored by the company's gross profit margin, which is currently at a low 5.8%.
An InvestingPro Tip highlights that ShiftPixy has experienced a strong return over the last week, with a 116.91% increase in price total return. However, it's crucial to note that the company has also been facing challenges, as indicated by another InvestingPro Tip which points out that ShiftPixy is quickly burning through cash. This tip is particularly relevant considering the company's recent capital raise, as it may impact investor confidence in ShiftPixy's ability to manage its finances effectively.
For those considering investing in ShiftPixy or seeking more in-depth analysis, there are additional InvestingPro Tips available. InvestingPro offers a range of insights including the company's stock volatility, anticipated sales decline, and analysts' profitability expectations. To access these valuable tips, visit https://www.investing.com/pro/PIXY. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, where you can find a total of 17 additional tips to help guide your investment decisions.
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