Miami, FL – May 18, 2023 – ShiftPixy, Inc. (NASDAQ: PIXY) (“ShiftPixy” or the “Company”), a Miami-based national staffing enterprise which designs, manages, and sells access to a disruptive, revolutionary platform that facilitates employment in the rapidly growing Gig Economy, today announced it has engaged a registered broker dealer to review PIXY trading data and collaborate in filing FinCEN 314(b) suspicious activity reports (“SAR”) on its behalf. Section 314(b) of the USA Patriot Act provides financial institutions with the ability to share information with one another, under a safe harbor that offers protections from liability, in order to better identify and report activities that may involve money laundering or terrorist activities. Information sharing pursuant to Section 314(b) is voluntary, and FinCEN strongly encourages financial institutions to participate. The process can yield a number of useful outcomes:
- Shedding more light upon overall financial trails, especially if they are complex and appear to be layered amongst numerous financial institutions, entities, and jurisdictions.
- Alerting other participating financial institutions to trading entities of whose suspicious activities they may not have been previously aware.
- Facilitating the filing of more comprehensive SARs than would otherwise be filed in the absence of 314(b) information sharing.
Section 314(b) and its implementing regulations impose no limitations on the sharing of personally identifiable information under the Section 314(b) safe harbor when otherwise consistent with Section 314(b) and its implementing regulations. Nor do Section 314(b) or its implementing regulations impose restrictions on the type or medium of information that can be shared in reliance on the Section 314(b) safe harbor, such as video surveillance footage or cyber-related data such as IP addresses. Section 314(b) information sharing can likewise be verbal as well as written. Financial institutions and associations of financial institutions must maintain adequate procedures to protect the security and confidentiality of all information shared pursuant to Section 314(b) and only use such information for the purposes laid out in Section 314(b) and its implementing regulations.
ShiftPixy’s CEO Scott Absher said, “I have been tracking naked short selling patterns since we first listed. We are now seeing algorithmic trading running wild as these trades appear to be run through a black box that is out-of-compliance with Regulation SHO and the Fair Market Making Requirement. We are able to track trading activity in real time with Level ll data and DTC weekly reporting, and can now track the registered market makers conducting these trades, either as a proprietary transaction, on behalf of a client or via a sponsored or market access agreement.” Mr. Absher went on to say, “We will be among the first to correlate monthly market maker share volume, daily short volume and share imbalance data within this legal framework strategy to identify and uncover suspicious trading activity on which we can follow up with appropriate legal action.”
ShiftPixy is a disruptive human capital services enterprise, revolutionizing employment in the Gig Economy by delivering a next-gen platform for workforce management that helps businesses with shift-based employees navigate regulatory mandates, minimize administrative burdens and better connect with a ready-for-hire workforce. With expertise rooted in management’s more than 25 years of workers’ compensation and compliance programs experience, ShiftPixy adds a needed layer for addressing compliance and continued demands for equitable employment practices in the growing Gig Economy.
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements. These forward-looking statements include, among other things, statements regarding the anticipated use of proceeds from the private placement, the anticipated closing date of the private placement and the anticipated filing and effectiveness date for a registration statement related to the resale of the common shares and common shares underlying warrants from the private placement. Although such forward-looking statements are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate. If any of the risks or uncertainties, including those set forth below, materialize or if any of the assumptions proves incorrect, the results of the Company, could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties include, but are not limited to, risks associated with the nature of the Company’s business model; the Company’s ability to execute its vision and growth strategy; the Company’s ability to attract and retain clients; the Company’s ability to assess and manage risks; changes in the law that affect the Company’s business and its ability to respond to such changes and incorporate them into its business model, as necessary; the Company’s ability to insure against and otherwise effectively manage risks that affect its business; competition; reliance on third-party systems and software; the Company’s ability to protect and maintain its intellectual property; and general developments in the economy and financial markets. These and other risks are discussed in the Company’s filings with the SEC, including, without limitation, its Annual Report on Form 10-K, and its periodic and current reports on Form 10-Q and Form 8-K. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change, except as required by applicable securities laws. The information in this press release shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and will not be deemed an admission as to the materiality of any information that is required to be disclosed solely by Regulation FD. Further information on these and other factors that could affect the financial results of the Company, is included in the filings we make with the SEC from time to time. These documents are available on the “SEC Filings” subsection of the “Investor Information” section of the Company’s website at https://ir.shiftpixy.com/financial-information/sec-filings, or directly from the SEC’s website at https://www.sec.gov. Consistent with the SEC’s April 2013 guidance on using social media outlets like Facebook and Twitter to make corporate disclosures and announce key information in compliance with Regulation FD, the Company is alerting investors and other members of the general public that the Company will provide updates on operations and progress required to be disclosed under Regulation FD through its social media on Facebook, Twitter, LinkedIn and YouTube. Investors, potential investors, shareholders and individuals interested in the Company are encouraged to keep informed by following us on Facebook, Twitter, LinkedIn and YouTube.
SOURCE: ShiftPixy, Inc.