ShiftPixy (NASDAQ:PIXY) shares rocketed higher a whopping 176% today following the announcement it would trade its shares on digital securities platform Upstream (by MERJ) along with spinning out ShiftPixy Labs as its own company. While shares dipped slightly in after-hours trading, ShiftPixy started the day at around $19 only to close at around $31.
According to a corporate statement, ShiftPixy plans to transfer its “Virtual Brand” development pipeline and technology stack of ShiftPixy Labs to a wholly-owned subsidiary, ShiftPixy Labs, Inc., with the shares distributed to ShiftPixy shareholders, using a record date of September 8, 2022.
ShiftPixy Labs, Inc is expected to be double listed like ShiftPixy – both on Nasdaq and blockchain-powered Upstream. The listing on the two exchanges is expected to take place in October.
Scott W. Absher, Chairman and CEO of ShiftPixy, said the spinoff was an example of their goal of driving value to their shareholders:
“Since the inception of ShiftPixy Labs, we have made significant progress in developing tech-forward solutions that are nearly ready for launch, including Web3 innovations to support our virtual brand’s development. The planned spin-off will allow both ShiftPixy and ShiftPixy Labs to focus resources on the development of their respective initiatives to create even greater opportunity for product development success.”
Trading volume topped 17 million shares today, in stark contrast to its daily average volume of around 73,000 shares. ShiftPixy did pop up on the Reddit boards including Superstonk. and Wallstreetbetsnew.
Like many listed companies, ShiftPixy shares are down dramatically since the beginning of the year. At the end of August, ShiftPixy announced a reverse 100 to 1 share split with the event taking place earlier this month.
ShiftPixy is a company that caters to the Gig Economy and employment. ShiftPixy’s app serves as an “all-in-one workforce management platform for operators” that depend on periodic employees.
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