Fr8Tech cuts workforce, raises $1.2M as it exits brokerage ops

Freight Technologies, Inc. (Nasdaq: FRGT), known as Fr8Tech, announced workforce reductions and a $1.2 million capital raise as part of its ongoing shift away from online freight brokerage toward software and artificial intelligence products.

The company completed significant workforce reductions in the second quarter of 2026, concentrated within its brokerage operations. Fr8Tech expects to substantially complete its restructuring by the end of the third quarter of 2026, with total severance and restructuring costs estimated at approximately $0.4 million, of which $0.2 million was incurred in the second quarter.

On July 14, 2026, Fr8Tech entered into a securities purchase agreement with an institutional investor to sell 1,200,000 Series C preferred shares at a par value of $0.0001 per share for an aggregate purchase price of $1.2 million. Net cash proceeds are expected to total approximately $1.15 million after expenses. The company said it intends to use the proceeds for restructuring, working capital, and general corporate purposes.

The announcement follows a June 18 disclosure in which Fr8Tech secured a $2.5 million loan, used to repay and terminate its prior credit facility. The new loan carries an interest rate of 10.0% per annum and matures on June 17, 2027.

As of June 30, 2026, the company reported approximately $285,000 in cash and cash equivalents, $3.5 million in billed and unbilled accounts receivable, $2.5 million in accounts payable and accrued expenses, and $2.5 million in short-term debt. The company noted these figures are unaudited.

Fr8Tech said it is continuing to explore strategic alternatives for its brokerage operations, including a potential sale, but stated no assurance can be given that any transaction will result. Certain Fr8Fleet dedicated capacity operations were transitioned to other operators in the second quarter of 2026.

"By establishing a leaner cost structure and accelerating the transition away from brokerage operations, we are building the financial foundation from which Fr8Tech can scale its recurring, higher-margin SaaS and AI-based revenue streams," said Chief Financial Officer Don Quinby, according to the press release.

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