• The Inc (NASDAQ: PIXY) share price rose 21.05% yesterday. That’s why it happened.

The ShiftPixy Inc (NASDAQ: PIXY) share price rose 21.05% yesterday, from a previous close of $ 2.85 to $ 3.45. Investors appear to have responded positively to a company filing with the SEC.

A group of ShiftPixy selling shareholders may offer and resell (i) up to 2,320,000 common shares and (ii) up to 7,824,328 common shares issuable upon exercise of warrants, including pre-funded warrants and warrants issued by the Holder to AGP / Alliance Global Partners and its affiliates for remuneration as placement agent in the context of transactions acquired by the selling shareholders under the contract of purchase of securities, dated May 13, 2021, by and between the company and the investor listed therein and the placement agent contract, dated May 13, 2021, by and between the company and AGP / Alliance Global Partners.

The Company may receive up to approximately $ 12.66 million in total gross exercise proceeds in cash from the warrants, based on the exercise price per share of the warrants. And any proceeds the company receives from the exercise of the warrants will be used for working capital and general corporate needs, including in activities related to their sponsorship of acquisition companies. special (SPAC). Holders of Warrants are not required to exercise their Warrants and the Company cannot predict whether holders of Warrants will elect to exercise some or all of their Warrants.

SPAC sponsorship

On April 29, 2021, the company announced its sponsorship through its wholly owned subsidiary ShiftPixy Investments of 4 initial public offerings of PSPC. Three of the PSPCs are each seeking to raise $ 250 million in capital investment to acquire companies in the light industry, health and technology sectors of the personnel industry and the fourth PSPC seeks to raise 500 million dollars in capital investment to acquire one or more insurance policies. entities.

The company expects that, through its wholly owned subsidiary, it will own approximately 20% of the issued and outstanding shares in each entity once their IPOs are declared effective and completed (which is likely to decrease over time. ), and that each operate as a separately managed listed entity following the completion of their respective initial business combinations, or “De-SPAC”.

The company plans to enter into service agreements with each of the endowment entities that will enable them to participate in ShiftPixy’s HRIS platform. And ShiftPixy also expects to facilitate the purchase of workers’ compensation, third party liability and other similar insurance products for these endowment entities through their early relationship with PSPC after insurance. have completed the De-SPAC process.

Disclaimer: This content is intended for informational purposes. Before you make an investment, you need to do your own analysis.

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