Fr8Tech furthers its transition to a pure-play, software-driven logistics technology company as it advances the build-out of an AI-native freight platform, completes additional workforce reduction, scales back brokerage operations, and raises $1.2 million to support its evolution
HOUSTON, July 15, 2026 (GLOBE NEWSWIRE) -- Freight Technologies, Inc. (Nasdaq: FRGT, "Fr8Tech" or the "Company"), a technology-centric logistics company offering a diversified portfolio of AI software solutions designed to address key inefficiencies in the supply chain, today 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.