ShiftPixy to Launch Reg A+ Crowdfunding Offer Once Again

ShiftPixy, with the assistance of WR Hambrecht, is moving forward with a Reg A+ offer once again.

Last year, ShiftPixy attempted to raise funding using the Reg A+ exemption only to fall short of the goal. The offer  ShiftPixy was on a “best effort” basis to raise up to $50 million with a minimum raise of $15 million. The idea was to raise capital and then quickly apply to list on NASDAQ under Ticker Symbol PIXY. ShiftPixy ended up withdrawing its common stock from potential listing on  NASDAQ as it regrouped and returned all committed funds. ShiftPixy CEO Scott Absher said at the time;

“This is part of the process of the reset of our offering.  We are making some adjustments, and we plan to bring our IPO back as soon as possible.”

While the Reg A+ filing has still not been qualified by the SEC, ShiftPixy is accepting registrations from potential investors. Once the filing has been approved, ShiftPixy will seek to sell 2 million shares of their common stock at a price ranging from $6 to $8 per share.

ShiftPixy is a “human capital management services provider”. The platform matches job providers and workers without a formal job interview or long-term commitment. Emerging out of the sharing economy, ShiftPixy helps to manage all of the paperwork and regulated aspects of employing part-time help. With a growing number of adults participating in flexible work arrangments, ShiftPixy wants to make it all smoother and simpler.

According to the ShiftPixy Offering Circular, if the offering is successful the money will be used for Software development and support, consisting of the continued development and rollout of their first phase mobile platform and extension of our operating platform. They also plan on opening regional offices to help with the expansion of their service.

Gross Billions for the year ended August 31, 2016, totaled $50.7 million with a gross profit of $1.5 million and a net loss of $1.8 million. This is a significant increase versus year prior when the company was just getting started.

A WR Hambrecht representative recently shared some fascinating insight into their Reg A+ business. They have listed multiple Reg A+ offers on the WR Hambrecht platform but struggled to close many of the offers. Challenges included institutional resistance and FINRA scrutiny. Reviewing ShiftPixy, WRH said;

  • Offering met institutional standards (approx. 50 roadshow meetings)
  • General acceptance of Reg A+, but there was confusion/concern regarding a fixed price
  • Strong retail participation but investors yet to embrace early-stage entrants to public market

WR Hambrecht is not giving up though, and they are learning from their prior experience and going to the market once again.

If ShiftPixy raises sufficient money and lists on NASDAQ, early investors will have the ability to sell their shares. This provides investors a choice between holding long or selling shares thus providing an important option to exit from the investment at any time.


Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!

Sponsored Links by DQ Promote

Send this to a friend