ShiftPixy Stock Gains 24%

Shares of ShiftPixy, Inc. (PIXY) are gaining over 24% on Thursday morning. On Wednesday, the company had announced that it entered into a securities-purchase agreement with a single U.S. institutional investor for a private placement of stock and warrants.

PIXY is currently trading at $16.94, up $3.28 or 24.01%, on the Nasdaq. The stock opened its trading at $13.72 after closing Wednesday's trading at $13.66. The stock has traded between $11.06 and $203.00 in the past 52-week period.

The company said it expects to see proceeds of $5 million before deducting placement agent commissions and other transaction-related expenses.

In the private placement, ShiftPixy has agreed to sell 417,000 shares together with warrants to buy up to 833,000 shares. Each share of common stock and two accompanying common warrants are being sold together at a combined purchase price of $12.

The company intends to use the proceeds from the private placement for general corporate purposes, including working capital, operating expenses and capital expenditures.

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