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$2.5M secured loan refinances Freight Technologies (FRGT) credit facility

Filing Impact
(Neutral)
Filing Sentiment
(Neutral)
Form Type
6-K

Rhea-AI Filing Summary

Freight Technologies, Inc. entered into a new Loan and Security Agreement with an institutional lender for a secured term loan of $2,500,000. The loan carries a 10.0% annual interest rate, calculated on a 365‑day basis, and matures on June 17, 2027, with interest payable monthly starting July 1, 2026.

Interest can, at the lender’s discretion, be paid in kind and added to principal if the borrowers lack cash. The loan can be prepaid at any time but each repayment or prepayment triggers a 10.0% prepayment premium, and default interest is 2.0% above the normal rate. The agreement places restrictions on additional indebtedness, new liens, and changes to the nature of the business. The company plans to use the net proceeds to fully repay its existing credit facility with Capital Foundry Funding, LLC.

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Insights

Freight Technologies refinances debt with a $2.5M secured term loan at 10% interest and tight covenants.

The company obtained a $2,500,000 secured term loan bearing 10.0% annual interest, maturing on June 17, 2027. This provides committed funding while pledging all borrower assets as collateral under the Loan and Security Agreement.

Key terms include monthly interest payments with optional payment-in-kind at the lender’s discretion, a 10.0% prepayment premium on any repayment, and a 2.0% default rate increase. Covenants limit additional indebtedness, liens, and business changes, so financial flexibility is more constrained.

The company intends to use the proceeds to fully repay its existing credit facility with Capital Foundry Funding, LLC, effectively refinancing rather than adding net new leverage. Future filings may clarify how this structure affects interest expense and covenant headroom over the term through 2027.

Secured term loan amount $2,500,000 Aggregate principal amount under Loan and Security Agreement
Interest rate 10.0% per annum Stated annual interest rate on the loan
Maturity date June 17, 2027 Date on which the loan matures
Default interest premium 2.0% above normal rate Additional rate applied upon event of default
Prepayment premium 10.0% of principal repaid Premium on any repayment or prepayment
Interest payment start July 1, 2026 First monthly interest payment date
Loan and Security Agreement financial
"entered into a Loan and Security Agreement (the “Loan Agreement”) with a certain institutional investor"
A loan and security agreement is a legal contract that sets out the amount, repayment schedule, interest and the rules a borrower must follow, and it names specific assets a lender can claim if the borrower fails to pay. Think of it like a mortgage or car loan where the lender holds a claim on collateral until the debt is repaid. Investors care because it determines a company’s repayment priorities, borrowing costs, operational limits and how easily creditors can seize assets in distress, all of which affect equity value and credit risk.
secured term loan financial
"the Lender agreed to provide a secured term loan to the Borrowers in the aggregate principal amount"
A secured term loan is a bank or investor loan with a set repayment schedule and interest, backed by specific company assets that the lender can claim if payments stop—think of it like a mortgage on a business asset. It matters to investors because it sits higher in the company’s payment order than equity, reducing lender risk but adding fixed cash obligations that affect free cash flow, leverage and the likelihood of losses for shareholders if the company struggles.
perfected security interest financial
"the Borrowers agreed to grant a perfected security interest to secure the Borrowers’ obligations"
prepayment premium financial
"A prepayment premium equal to 10.0% of the principal amount of any repayment or prepayment"
A prepayment premium is a fee a borrower pays when they pay off a loan or debt earlier than agreed, like an early-termination charge on a phone contract. For investors, it affects the timing and amount of cash they receive from loans or mortgage-backed securities, changing expected returns and reinvestment plans because early repayment can return principal sooner or come with extra compensation.
event of default financial
"Upon the occurrence and during the continuance of an event of default, interest on the unpaid principal amount"
An event of default is a specific breach of a loan or bond agreement—such as missed payments or breaking agreed rules—that gives lenders the legal right to act, for example by demanding immediate repayment, seizing collateral, or accelerating other obligations. For investors, it’s a red flag because it can sharply reduce a company’s ability to operate or raise money, like a car lender repossessing a vehicle after missed payments, and often leads to falling share or bond prices.
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Form 6-K: How Foreign Companies Report to the SEC →

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of June 2026.

 

Commission File Number 001-38172

 

FREIGHT TECHNOLOGIES, INC.

(Translation of registrant’s name into English)

 

Mr. Javier Selgas, Chief Executive Officer

2001 Timberloch Place, Suite 500

The Woodlands, TX 77380

Telephone: (773) 905-5076

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F

 

 

 

 

 

 

Entry into a Material Definitive Agreement.

 

On June 18, 2026, Freight Technologies, Inc. (the “Company”), together with its subsidiaries Freight App, Inc., a Delaware corporation, and Freight App de Mexico, S.A. de C.V., a Mexican corporation (collectively with the Company, the “Borrowers”), entered into a Loan and Security Agreement (the “Loan Agreement”) with a certain institutional investor (the “Lender”), pursuant to which the Lender agreed to provide a secured term loan to the Borrowers in the aggregate principal amount of $2,500,000 (the “Loan”) and the Borrowers agreed to grant a perfected security interest to secure the Borrowers’ obligations under the Loan in all assets of the Borrowers.

 

The Loan bears interest at a rate of 10.0% per annum calculated on a 365-day year based on the actual number of days elapsed, and matures on June 17, 2027. Interest is payable on the first day of each calendar month commencing July 1, 2026. If the Borrowers have insufficient cash to make scheduled interest payments, such interest may, at the Lender’s option and sole discretion, be paid in kind by adding such interest to the principal amount. The Loan may be prepaid at any time. A prepayment premium equal to 10.0% of the principal amount of any repayment or prepayment of the Loans shall be payable in connection with each such repayment or prepayment. Upon the occurrence and during the continuance of an event of default, interest on the unpaid principal amount shall accrue at the rate otherwise applicable plus 2.0%.

 

Pursuant to the Loan Agreement, the Borrowers agreed during the term of the Loan not to among other things, incur any indebtedness or a mortgage, lien or other such encumbrance, subject to certain exceptions, or change the nature of its business.

 

The Company intends to use the net proceeds from the Loan to repay in full its existing credit facility with Capital Foundry Funding, LLC.

 

The foregoing description of the terms and conditions of the Loan Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Loan Agreement, a copy of which is filed as Exhibit 10.1 to this Report of Foreign Private Issuer on Form 6-K.

 

 

 

 

EXHIBIT INDEX

 

Exhibit No.   Description
10.1   Form of Loan and Security Agreement dated as of June 18, 2026, by and among Freight Technologies, Inc., Freight App, Inc., Freight App de Mexico, S.A. de C.V., and the Lender.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: June 23, 2026 FREIGHT TECHNOLOGIES, INC.
     
  By: /s/ Javier Selgas
  Name: Javier Selgas
  Title: Chief Executive Officer

 

 

 

 

Source: View Original Filing on SEC EDGAR

FAQ

What loan did Freight Technologies (FRGT) enter into in June 2026?

Freight Technologies entered a secured term loan for $2,500,000 with an institutional lender. The loan is documented in a Loan and Security Agreement and is secured by a perfected security interest in all assets of the borrowers.

What are the key terms of Freight Technologies' new $2.5M loan?

The $2,500,000 loan bears 10.0% annual interest, calculated on a 365-day year, and matures on June 17, 2027. Interest is due monthly starting July 1, 2026, with default interest 2.0% above the normal rate.

Can Freight Technologies prepay the new loan and is there a penalty?

The loan may be prepaid at any time, but each repayment or prepayment triggers a 10.0% prepayment premium on the principal amount repaid. This premium applies to any repayment during the loan’s term through June 17, 2027.

How will Freight Technologies (FRGT) use the $2.5M loan proceeds?

The company intends to use the net proceeds from the $2,500,000 loan to repay in full its existing credit facility with Capital Foundry Funding, LLC. This represents a refinancing of its current borrowing rather than incremental net borrowing.

What collateral and covenants secure Freight Technologies' new loan?

The borrowers granted a perfected security interest in all their assets to secure obligations under the loan. They also agreed not to incur additional indebtedness, create new liens, or change the nature of their business, subject to specified exceptions in the agreement.

Filing Exhibits & Attachments

1 document

Agreements & Contracts