# Freight Technologies Simplifies Capital Structure and Enacts Reverse Split

- URL: https://stocks.freetheai.org/news/freight-technologies-simplifies-capital-structure-and-enacts-reverse-split-94f451
- Published: 2026-10-19T13:11:00Z
- Category: company_news; sentiment: bearish; impact: high
- Symbols: [NASDAQ:FRGT](https://stocks.freetheai.org/symbols/NASDAQ-FRGT)
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
- How write-ups are made: https://stocks.freetheai.org/how-we-write
- Not financial advice: https://stocks.freetheai.org/disclaimer

Freight Technologies, Inc. (FRGT) announced a series of financial transactions aimed at streamlining its capital structure. The company completed exchange agreements to retire all 1,666,837 Series A4 preferred shares and 3,190,000 Series C preferred shares in exchange for rights to receive ordinary shares. In addition, all remaining warrants tied to a 2023 convertible note financing were fully exercised, eliminating potential share issuance overhangs. A 1-for-10 reverse share split also went into effect, with shares trading on a split-adjusted basis on Nasdaq. Shares of the company fell 20.43% to $1.484 following the developments.

The restructuring removes legacy preferred equity overhangs while clarifying the company's equity base for investors. The financial changes align with an ongoing operational pivot away from traditional freight brokerage toward software and artificial intelligence solutions. As part of this transition, Freight Technologies recently shifted a portion of its brokerage operations to partner Sendengo, which operates the business on the Fleet Rocket platform in exchange for recurring volume-based software fees.

Investors will be watching how effectively Freight Technologies can scale its recurring software revenue and expand its AI platforms across cross-border freight channels. The company aims to leverage tools such as Fleet Rocket and Zayren to build predictable software revenues, though maintaining its Nasdaq listing and managing operational risks remain key factors going forward.

## Key points

- Freight Technologies exchanged all Series A4 and 3.19 million Series C preferred shares for rights to ordinary shares.
- The company cleared all remaining ordinary share warrants from its 2023 convertible note financing.
- A 1-for-10 reverse share split took effect on Nasdaq, while stock dropped 20.43% to $1.484.
- Operational shift involves transferring brokerage operations to Sendengo to generate recurring software fee revenue.

## Questions and answers

### Why did Freight Technologies stock drop today?

Freight Technologies stock fell after announcing capital structure changes, including preferred share exchanges, clearing 2023 warrants, and implementing a 1-for-10 reverse stock split.

### What is the Freight Technologies reverse stock split ratio?

Freight Technologies executed a 1-for-10 reverse share split, with ordinary shares beginning trading on a split-adjusted basis on Nasdaq.

### How is Freight Technologies changing its business model?

Freight Technologies is scaling back traditional brokerage operations and shifting toward recurring software revenue by licensing its platforms, like Fleet Rocket, to operational partners.