Temp staff provider ShiftPixy is hoping to soon trade on the NASDAQ Capital Market under the ticker symbol PIXY but first, they are raising capital under Regulation A+. ShiftPixy has enlisted WR Hambrecht as sole underwriter on a “best effort” basis to raise up to $50 million with a minimum raise of $15 million.
ShiftPixy is a service provider that contracts with business clients in need of part-time staff primarily in the hospitality and restaurant industry. The company is currently operating in Southern California but intends on opening additional physical locations in New York, San Francisco, Chicago, Orlando, Dallas, Las Vegas, Atlanta and Philly (in that order). ShiftPixy currently has over 150 clients and about 3,350 worksite employees. ShiftPixy sees opportunity in the Affordable Care Act or Obamacare as it is commonly called. Their clients are facing multiple compliance challenges regarding Obamacare that are costly and burdensome. If one of their clients has 50 or more full-time employees under Obamacare they must provide health benefits – a significant cost. Using ShiftPixy helps these small companies avoid the Obamacare penalty and potential fines.
The offering circulate explains that ShiftPixy is creating an entire ecosystem to help small companies manage the burdens of Obamacare:
- ShiftPixy allows companies the chance to “off-load” their Obamacare compliance issues as ShiftPixy is the employer of record.
- By using ShiftPixy’s part time workers, small companies can quickly scale up or down – minus the additional operational cost
- ShiftPixy can use their own size to drive economies of scale and provide benefits at a lower cost.
John Hullar, Managing Partner of WR Hambrecht said their team was passionate about growth companies such as ShiftPixy as it “represents a great opportunity for all investors”;
“We support the expansion of the Regulation A+ exemption because it creates a new option for early-stage growth companies to access public markets through the A+ mini-IPO, which is important to the creation of jobs and future of the American economy.”
ShiftPixy is listed on the WR Hambrecht site now accepting indications of investor interest. The offer is open to both accredited and non-accredited investors. Indications of interest are non-binding. If the Reg A+ crowdfunding round is successful and they do list on the NASDAQ, investor will have immediate liquidity to buy or sell shares.
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