ShiftPixy Inc. shares fell sharply as the tech-based restaurant staffing firm priced a $12 million sale of shares and warrants.
The 1.9 million common shares plus warrants were combined at $5.40 apiece in an offering set to close Tuesday, May 26; shares (Nasdaq: PIXY) fell 29% to $5.13 and a $7.8 million market cap.
ShiftPixy expects gross proceeds of $12 million.
A March SEC filing said the offering, underwritten by Alliance Global Partners, was planned for up to $24 million, including warrants to AGP.
ShiftPIxy said then it expected to be “materially and negatively affected” by the coronavirus pandemic, which could “make it more difficult to meet our obligations to our clients and could result in reduced demand from our clients.”
It did a 1:40 reverse stock split in December; shares are down about 30% year-to-date.
