ShiftPixy Commits to $100 Million Financing Terms to Initiate Its Human Capital Rollup
March 20 2024 - 7:30AM
Business Wire
ShiftPixy, Inc. (Nasdaq: PIXY) (“ShiftPixy” or the “Company”), a
Florida-based national human capital provisioning enterprise which
designs, manages, and sells access to a disruptive, revolutionary
platform that facilitates employment in the rapidly growing Gig
Economy, today announced a significant advance in its growth
strategy with the receipt of terms for $100 million of commercial
financing with Forstmann & Co. Inc., to initiate the first
phase of the company’s human capital roll up. This substantial
financial injection is earmarked to kick off the first round of
strategic acquisitions slated for the first quarter of 2024,
marking a significant step in ShiftPixy's national expansion
plans.
Scott Absher, CEO of ShiftPixy stated that “We are very pleased
to be working with the Forstmann & Co. Inc., team on this
arrangement. This allows us to begin a series of strategic
acquisitions we have been preparing which significantly expands our
national footprint and technological edge. The financing facility
is designed to scale upward throughout 2024 enabling the company to
continue its acquisition work through 2025. As followers of the
company will recall, we had curated a substantial number of
acquisitions in industrial human capital in 2021. We are now on a
rapid pace to complete the work we began in 2021."
Keven Kim, Managing Partner/President of Forstmann & Co.
Inc., commented that “We are humbled to work with Scott Absher and
the ShiftPixy Team on this opportunity. We are always looking for
unique opportunities in existing sectors with potential magnitude
of change. This rollup opportunity and the technology platform the
company has developed for the human capital industry is a game
changer.”
About ShiftPixy
ShiftPixy is a disruptive human capital provisioning enterprise,
revolutionizing employment in the Gig Economy by delivering a
next-gen mobile platform for workforce engagement and management
that helps businesses with shift-based employees navigate
regulatory mandates, minimize administrative burdens and better
connect with a ready-for-hire workforce curing toxic levels of
employee turnover in hourly part time labor. With expertise rooted
in management’s more than 30 years of workers’ compensation and
compliance programs experience, ShiftPixy adds a needed layer for
addressing compliance and continued demands for equitable
employment practices in the growing Gig Economy.
About Forstmann & Co. Inc.
Founded in 1967 as Forstmann Leff Associates and it was
organized as a private incentivized firm by J. Anthony Forstmann
and Joel B. Leff as a private investment partnership with the very
specific objective of managing other people’s money intensively for
high rates of returns. The firm was one of the first hedge funds in
the US. In 1998 Forstmann & Co LLC was formed to provide
merchant banking services to its clients. In 2019, Forstmann &
Co. LLC was reorganized as Forstmann & Co. Inc., to provide
clients with strategic business advisory and services. Based in Los
Angeles, today Forstmann & Co. Inc’s goal is to identify and
potentially invest early in companies participating in large
magnitudes of change for the benefit of its investors and business
partners.
Forward-Looking Statements
Any statements contained in this press release that do not
describe historical facts may constitute forward-looking
statements. These forward-looking statements include, among other
things, statements regarding the anticipated use of proceeds from
the private placement, the anticipated closing date of the private
placement and the anticipated filing and effectiveness date for a
registration statement related to the resale of the common shares
and common shares underlying warrants from the private placement.
Although such forward-looking statements are based upon what
management of the Company believes are reasonable assumptions,
there can be no assurance that forward-looking statements will
prove to be accurate. If any of the risks or uncertainties,
including those set forth below, materialize or if any of the
assumptions proves incorrect, the results of the Company, could
differ materially from the results expressed or implied by the
forward-looking statements we make. The risks and uncertainties
include, but are not limited to, risks associated with the nature
of the Company’s business model; the Company’s ability to execute
its vision and growth strategy; the Company’s ability to attract
and retain clients; the Company’s ability to assess and manage
risks; changes in the law that affect the Company’s business and
its ability to respond to such changes and incorporate them into
its business model, as necessary; the Company’s ability to insure
against and otherwise effectively manage risks that affect its
business; competition; reliance on third-party systems and
software; the Company’s ability to protect and maintain its
intellectual property; and general developments in the economy and
financial markets. These and other risks are discussed in the
Company’s filings with the SEC, including, without limitation, its
Annual Report on Form 10-K, and its periodic and current reports on
Form 10-Q and Form 8-K. The Company undertakes no obligation to
update forward-looking statements if circumstances or management's
estimates or opinions should change, except as required by
applicable securities laws. The information in this press release
shall not be deemed to be “filed” for the purpose of Section 18 of
the Securities Exchange Act of 1934, as amended, or otherwise
subject to the liabilities of that section, and will not be deemed
an admission as to the materiality of any information that is
required to be disclosed solely by Regulation FD. Further
information on these and other factors that could affect the
financial results of the Company, is included in the filings we
make with the SEC from time to time. These documents are available
on the “SEC Filings” subsection of the “Investor Information”
section of the Company’s website at
https://ir.shiftpixy.com/financial-information/sec-filings, or
directly from the SEC’s website at https://www.sec.gov. Consistent
with the SEC’s April 2013 guidance on using social media outlets
like Facebook and Twitter to make corporate disclosures and
announce key information in compliance with Regulation FD, the
Company is alerting investors and other members of the general
public that the Company will provide updates on operations and
progress required to be disclosed under Regulation FD through its
social media on Facebook, Twitter, LinkedIn and YouTube. Investors,
potential investors, shareholders and individuals interested in the
Company are encouraged to keep informed by following us on
Facebook, Twitter, LinkedIn and YouTube.
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