Freight Technologies Secures $2.5M Secured Term Loan to Refinance Existing Debt
FRGT sits 56% above its 52-week low of $2.514 on light trading volume (0.4× avg).
Summary
Freight Technologies, Inc. secured a $2.5 million secured term loan with a 10% interest rate and a 10% prepayment premium, using the proceeds to refinance existing debt and granting a security interest in all company assets.
Key Events · Financing and Capital Events · FRGT
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Secured Term Loan Obtained
The company entered into a Loan and Security Agreement for a $2,500,000 secured term loan with an institutional investor.
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Refinancing Existing Debt
Proceeds from the loan will be used to repay in full an existing credit facility with Capital Foundry Funding, LLC.
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Loan Terms and Security
The loan bears interest at 10.0% per annum, matures on June 17, 2027, includes a 10.0% prepayment premium, and is secured by a perfected security interest in all assets of the Borrowers.
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Restrictive Covenants
The agreement includes covenants restricting the company from incurring additional indebtedness, creating new liens, paying dividends, selling assets outside the ordinary course of business, or changing its business nature, and requires maintaining Nasdaq compliance.
Analysis · FRGT · Energy & Transportation
Freight Technologies, Inc. has secured a $2.5 million secured term loan, which is a critical financing event given the company's market capitalization of approximately $2.36 million and a recent 'going concern' warning from its auditor on May 14, 2026. While the loan carries a high interest rate of 10% and a 10% prepayment premium, and is secured by all company assets, its primary purpose is to repay an existing credit facility. This refinancing is crucial for the company's immediate liquidity and operational continuity, addressing the auditor's concerns about its ability to continue as a going concern. The restrictive covenants, including limitations on future indebtedness and asset sales, reflect the company's current financial vulnerability.
At the time of this filing, FRGT was trading at $3.91 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $2.4M. The 52-week trading range was $2.51 to $56.50. This filing was assessed with neutral market sentiment and an importance score of 9 out of 10.