A spin-off announcement has been boosting the ShiftPixy Inc. (NASDAQ: PIXY) shares up 134.97% to trade at $26.34 in the early trades at last check. PIXY’s stock lost -4.19% to close Wednesday’s session at $11.21.
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What has PIXY announced?
In a press release today, PIXY unveiled its plan of forming a new wholly-owned subsidiary, ShiftPixy Labs, Inc. It will be formed to take over the Virtual Brand development pipeline and technology stack of ShiftPixy Labs (labs.shiftpixy.com). The dividends will then be paid out to ShiftPixy shareholders on September 8, 2022.
As part of the spin-off transaction, the Company must be able to comply with Wyoming law at the time of distribution, as well as ShiftPixy Labs, Inc. A successful listing on the Blockchain-powered Securities Exchange Upstream would eventually result in two standalone public companies, provided the company meets the qualifications.
A NASDAQ and Upstream initial public offering is scheduled for ShiftPixy Labs, Inc. in October 2022. Its planned spinoff of ShiftPixy Labs follows rapidly on the heels of its exciting announcement that it would dual list ShiftPixy shares on Upstream.
Announcing yesterday its intent to dual list shares on Upstream, the innovative trading app powered by Horizon Fintex (“Horizon”) and MERJ Exchange Limited (“MERJ”), PIXY said it has started the application process to do so.
As a result of the planned dual listing on Upstream, ShiftPixy will have access to a global, digital-first investor base that can trade using USDC digital currency, credit cards, debit cards, PayPal, and USD, increasing liquidity and price discovery in addition to globalizing ShiftPixy’s investment opportunities.
What impact will the spin-off have?
In addition to developing Web3 innovations to support its virtual brand’s development, ShiftPixy Labs has made considerable progress in developing tech-forward solutions. ShiftPixy (PIXY) and ShiftPixy Labs will both be able to focus resources on their respective product development initiatives, increasing their chances for success.