ShiftPixy’s stock more than doubles after $20 million contract closing expected to ‘fully fund’ operations
Shares of ShiftPixy Inc. PIXY, +106.95% more than doubled (up 148%) in active trading early Wednesday, enough to pace all Nasdaq-listed advancers, after the staffing services company announced the completion of a recapitalization and the closing of a contract assignment. The company said 60% of its contracted book of business was assigned for $20 million, with the proceeds expected to “fully fund operations through to cash-flow breakeven,” which it expects to achieve by mid-2020. “We decided to monetize a portion of our business that is not critical to our HRIS platform growth initiatives or has limited ‘upsell’ opportunities, yet still carries excellent value for other operators,” said Chief Executive Scott Absher. The stock, which was underwent a 1-for-40 reverse stock split in December, has still tumbled 70% over the past 12 months, while the S&P 500 SPX, +2.19% has rallied 26%.
ShiftPixy, Inc. Announces Special Distribution of Shares of Industrial Human Capital, Inc.
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 that its Board of Directors (the Board) approved a special distribution to ShiftPixy shareholders in the form of shares of common stock of Industrial Human Capital, Inc. (NYSE: AXH), the special purpose acquisition company, or SPAC, in which ShiftPixy currently owns an approximate 15% ownership stake. All ShiftPixy shareholders of record as of May 17, 2022 , will receive their pro rata share of AXH common stock equal in proportion to their percentage holdings of ShiftPixy common stock issued and outstanding, subject to certain conditions described below. The exact number of shares of AXH common stock to be received by ShiftPixy shareholders for each share of ShiftPixy common stock will be determined immediately before the record date based on the number of shares of ShiftPixy common stock outstanding on an as-converted and as-exercised basis. The AXH shares are expected to be distributed to eligible ShiftPixy shareholders as soon as practicable following the completion of AXHs initial business combination, subject to a registration statement covering the AXH shares being declared effective by the Securities and Exchange Commission (SEC). Fractional shares will not be issued, and no distributions will be made in lieu of fractional shares. There is no assurance that AXH will be able to successfully complete its initial business combination, in which case AXH would cease all operations except for the purpose of winding up and the AXH common stock will be worthless.