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Tuesday, May 24, 2022

ShiftPixy Seeks to Raise Up to $24M

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Tech-based restaurant staffing firm ShiftPixy Inc. (Nasdaq: PIXY) in Irvine plans to raise as much as $24.3 million and warned of effects of the coronavirus pandemic in a March 27 Securities and Exchange Commission filing.

The offering is for $11.5 million in common stock and another $11.5 million in “pre-funded warrants.” Underwriter A.G.P./Alliance Global Partners will get warrants valued at up to $1.3 million, the filing said.

“Our business could be adversely affected by the effects of a widespread outbreak of contagious disease,” ShiftPixy said.

The firm expects to be “materially and negatively affected” by the widening pandemic, which could “make it more difficult to meet our obligations to our clients and could result in reduced demand from our clients.”

Company shares closed down 10% at $5.19 apiece in intraday trading and another 5% after hours to a market cap of $5.5 million; shares recovered by about 2% in midday trading Tuesday.

ShiftPixy effected a 1:40 reverse stock split in December; shares have lost a third of their value year-to-date.

Go here for more updates on how OC companies are responding to coronavirus.

For ongoing, in-depth coverage of coronavirus effects on OC businesses, see the Monday print edition of the Business Journal, which includes a profile of ShiftPixy.

Kevin Costelloe
Kevin Costelloe
Tech reporter at Orange County Business Journal

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