Today, Freight Technologies, Inc. (NASDAQ:FRGT), a company specializing in management consulting services currently trading at $1.71 per share with a market capitalization of $282.25 million, announced the results of its Annual Meeting of Shareholders which occurred at 2:00 pm EST.
According to InvestingPro analysis, the company's financial health score is currently rated as WEAK, with significant challenges reflected in its -34.1% revenue decline over the last twelve months. Shareholders voted on several key proposals, including the election of directors and the ratification of the company's independent auditor.
Shareholders elected all five director nominees to serve until the next Annual Meeting. The directors elected are Javier Selgas, Nicholas H. Adler, William Samuels, Marc Urbach, and Paul Freudenthaler. The votes for each nominee ranged from 323,786 to 331,363 in favor, with broker non-votes uniformly at 496,224. For investors seeking deeper insights, InvestingPro offers 15 additional investment tips and comprehensive financial metrics to better understand the company's positioning and potential.
Additionally, the appointment of Marcum LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024, was ratified with a significant majority of 635,688 votes for and 258,651 against.
Two amendments to the company's amended and restated memorandum and articles of association were also on the ballot. The first amendment, which proposed that the ordinary shares shall have no par value, was approved with 299,831 votes for, 96,864 against, and 5,729 abstentions. The second amendment aimed to reduce the quorum for shareholder meetings from 50% to one-third of votes of the ordinary shares entitled to vote, and it passed with 286,098 votes for, 105,617 against, and 10,709 abstentions.
In an advisory capacity, shareholders voted on the compensation of the company's named executive officers, with 334,582 votes for, 66,214 against, and 1,628 abstentions.
Despite recent governance changes, the company faces significant challenges, with a negative EBITDA of -$8.24 million and a concerning gross profit margin of -27.04% in the last twelve months.
In other recent news, Freight Technologies reported a 6.6% increase in revenue for the first half of 2024, totaling $8.1 million, alongside a 40% rise in gross profits year-over-year.
The company also announced a one-for-twenty-five reverse stock split, a strategic move aimed at complying with Nasdaq's minimum bid price requirement. This move is significant as it follows the company's successful regaining of compliance with the Nasdaq's minimum bid price requirement.
In addition to these developments, Freight Technologies adjourned its 2024 Annual General Meeting due to a lack of quorum, falling short of the required 50% of the votes of the shares entitled to vote. The company also expanded its collaborations, partnering with Bayer (OTC:BAYRY) CropScience LP for truckload services and Amazon (NASDAQ:AMZN) Mexico for U.S.-Mexico cross-border shipping operations.
Freight Technologies also reported resolving outstanding promissory notes and convertible notes with Freight Opportunities LLC, strengthening its balance sheet. Furthermore, the company launched its Transportation Management System (TMS), a digital command center for logistics teams.
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