![]() “ There is deep intelligence in the stream, which can be better packaged and distributed to broader audiences, both on and off platform.”įounded in 2008 and based in San Diego, other StockTwits investors include Foundry Group and IA Capital.Miami, FL – – ShiftPixy, Inc. (NASDAQ: PIXY) (“ShiftPixy” or the “Company”), a Florida-based national staffing enterprise which designs, manages, and sells access to a disruptive, revolutionary platform that facilitates employment in the rapidly growing Gig Economy, today announced that its Board of Directors (the “Board”) approved a special distribution to ShiftPixy shareholders in the form of shares of common stock of Industrial Human Capital, Inc. (NYSE: AXH), the special purpose acquisition company, or “SPAC”, in which ShiftPixy currently owns an approximate 15% ownership stake. PIXY STOCKTWITS PROĪll ShiftPixy shareholders of record as of May 17, 2022, will receive their pro rata share of AXH common stock equal in proportion to their percentage holdings of ShiftPixy common stock issued and outstanding, subject to certain conditions described below. The exact number of shares of AXH common stock to be received by ShiftPixy shareholders for each share of ShiftPixy common stock will be determined immediately before the record date based on the number of shares of ShiftPixy common stock outstanding on an as-converted and as-exercised basis. The AXH shares are expected to be distributed to eligible ShiftPixy shareholders as soon as practicable following the completion of AXH’s initial business combination, subject to a registration statement covering the AXH shares being declared effective by the Securities and Exchange Commission (“SEC”). Fractional shares will not be issued, and no distributions will be made in lieu of fractional shares. That is, unless funds have significant reason to believe PIXY stock will surge again.There is no assurance that AXH will be able to successfully complete its initial business combination, in which case AXH would cease all operations except for the purpose of winding up and the AXH common stock will be worthless. ![]() However, this raises a question: what else can ShiftPixy offer investors? After all, a stock that has shed more than 80% of its value over the past five years - hitting penny stock status - doesn’t quite fit the criteria of most hedge funds. And if prominent hedge funds start taking an interest in PIXY stock now, it has the potential to keep moving upward. An influx of large-scale investments can send a stock soaring. Just as a stock split can make a stock more appealing to retail traders, a reverse split can make shares more appealing to institutional investors who only buy stocks above a certain price point. “Per-share price bumping is the primary reason why companies opt for reverse stock splits,” according to Investopedia.īut that isn’t the only reason ShiftPixy may be opting for the split. Under a reverse stock split, an investor’s holdings do diminish in terms of the number of shares, but the stock often rises in value. It makes sense that ShiftPixy is seizing the opportunity to implement one of the few things that has worked for it in the past. Even as the pandemic accelerated the gig economy, ShiftPixy proved unable to ride the wave. Since this early 2020 bump, shares have trended steadily downward. This resulted in PIXY stock surging in the month that followed, although it started losing momentum shortly after. The company enacted a 40-for-1 reverse split in late December 2019. ![]() But will it be enough to help ShiftPixy take flight? Let’s take a closer look at what investors can expect.īefore diving into today’s news, it’s important to note one thing this isn’t ShiftPixy’s first reverse stock split. This reverse stock split is clearly the company’s attempt to breathe new life into shares. However, ShiftPixy hasn’t demonstrated any sustainable growth since then. Back in May, shares shot up 185% after the company announced a special share distribution plan for investors. PIXY stock is known for eye-catching surges. Its gains for the past month have surpassed 10,000%.Īs impressive as today’s performance is, gains of that magnitude tend to stabilize. Still, after a month of trading at less than 50 cents per share, the stock is now at a price of more than $20 as of this writing. Since markets opened, PIXY has surged more than 100% at one point, although with some volatility. Now, PIXY stock is trading on a reverse split basis. Workforce technology platform ShiftPixy (NASDAQ: PIXY) asked shareholders to vote on a reverse stock split on July 19 and investors voted in favor of the one-for-one hundred reverse split proposal. After a summer of stock splits, one company has opted for the opposite course of action.
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