ShiftPixy Sinks; Co. Privately Places $5 Mln Of Shares

Shares of staffing solutions provider ShiftPixy, Inc. (PIXY) are down more than 32% Wednesday morning at $14.53, after announcing $5 million private placement.

The company plans to use the net proceeds of $5 million for general corporate purposes including working capital, operating expenses and capital expenditures.

The company today said it has agreed to sell 416,667 shares together with warrants to purchase up to 833,334 shares, to a U.S. institutional investor.

The combined price for one stock and two accompanying warrants is set at $12.

The private placement is expected to close on September 23.

PIXY has traded in the range of $11.06-$203.00 in the past 1 year.

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