ShiftPixy Closes $9 Million Private Placement Financing

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ShiftPixy Inc (NASDAQ:PIXY), a disruptive workforce engagement platform provider announced that it completed a private placement of eight percent senior secured convertible notes institutional investors raising $9 million of gross proceeds. As quoted in the press release: The Notes were issued pursuant to a Securities Purchase Agreement, dated June 4, 2018. The proceeds will be …

As quoted in the press release:

The Notes were issued pursuant to a Securities Purchase Agreement, dated June 4, 2018. The proceeds will be used primarily for working capital and general corporate purposes.
The senior secured Notes rank senior to the Company’s existing and future indebtedness and bear interest at 8% per annum, which shall be paid monthly beginning on the first such date after issuance.
Scott Absher, CEO and co-founder of ShiftPixy, stated, “Our unlevered balance sheet affords us an opportunity to use debt for our working capital needs going forward. This financing provides a means for us to raise capital in a manner far less dilutive than an alternative equity offering would otherwise be. We are pleased with the continued advancement of ShiftPixy’s business based on our recent market growth, and as further evidenced by our ability to use debt as a more efficient part of our capital structure.”
Drexel Hamilton, LLC acted as sole placement agent for the offering. Drexel Hamilton, LLC is a full-service institutional broker-dealer founded on the principle of offering meaningful employment opportunities to disabled veterans.

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