Reg A+ Crowdfunding Offer for Shares in ShiftPixy Nearing Close

ShiftPixy is nearing the close of its Reg A+ crowdfunding offer it is completing with the assistance of WR Hambrecht. You may read the ShiftPixy Offering Circular here. ShiftPixy hopes to raise up to $14 million via this funding round that allows both accredited and non-accredited investors to participate.

ShiftPixy is a digital company providing staffing services that is first focusing on the restaurant and hospitality industry and then will add additional industry sectors. Think of it as like an Uber for everything else besides driving. The platform allows small businesses to quickly fill vacancies while providing a back end management service to streamline the process. A virtual HR placement department on your smartphone. ShiftPixy is already at a run rate of $123 million a year and is planning a roll out across the country into multiple metropolitan areas.  Following the mini-IPO, ShiftPixy plans on trading on the NASDAQ under the symbol of PIXY.

We have covered ShiftPixy in the past as the company originally filed to do a Reg A+ offer in 2016. This earlier attempt at raising capital did not do so well so the company regrouped, along with the help of WR Hambrecht, and relaunched their offer this past spring.  Much has changed since the first go at crowdfunding their share offer.

Now, WR Hambrecht is partnering with Zacks to provide research on the offer. The current share price is booked at $7.00 per share but Zacks expects ShiftPixy to trade up to $12.60 per share. That is a significant jump in valuation. Zacks says that based on its rapid revenue ramp and a comparable multiple of 1.1 times enterprise value to revenues they believe the company could be worth $330 million a year from now, up 80%, if sales estimates are met.  The addition of outside research may help fuel investor interest. WR Hambrecht has struggled to find the right equation to make Reg A+ crowdfunding work effectively. They have had a few challenging moments but give credit where credit is due – Hambrecht is adapting and improving their online ecosystem and it appears to be working.

ShiftPixy is expected to close soon and, if everything goes according to plan, will trade on NASDAQ – perhaps becoming the second Reg A+ issuer to accomplish this task.


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