ShiftPixy (PIXY) Prices $5 Million Private Placement of Common Stock, Warrants

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 it has entered into a securities purchase agreement with a single U.S. institutional investor for a private placement of common stock and warrants exercisable for common stock expected to result in gross proceeds to the Company of approximately $5 million before deducting placement agent commissions and other transaction-related expenses payable by the Company. In the private placement, the Company has agreed to sell 416,667 shares of its common stock together with common warrants to purchase up to 833,334 shares of common stock. Each share of common stock and two accompanying common warrants are being sold together at a combined purchase price of $12.00. The common warrants will have an exercise price of $12.00 per share, will be exercisable immediately and will expire seven years from the date of issuance. In connection with the private placement, the Company will reduce the exercise price of 124,194 outstanding warrants to purchase shares of common stock to $0.01 per share, effective upon the closing of the private placement.

The Company intends to use the net proceeds from the private placement for general corporate purposes, including working capital, operating expenses and capital expenditures. The private placement is expected to close on or about September 23, 2022, subject to customary closing conditions.

A.G.P./Alliance Global Partners is acting as the sole placement agent for the private placement.

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