STAF Stock Price: 1-for-6 Reverse Split

By Amit Chowdhry ● Jul 1, 2021
  • Staffing 360 Solutions, Inc. (NASDAQ: STAF) has announced a 1-for-6 reverse split. These are the details.

Staffing 360 Solutions, Inc. (NASDAQ: STAF) – a company executing an international buy-integrate-build strategy through the acquisition of staffing organizations in the United States and the United Kingdom – announced that it intends to effect a reverse stock split of its common stock at a ratio of 1 post-split share for every 6 pre-split shares. The reverse stock split became effective at 5:00 p.m. yesterday. And Staffing 360’s common stock will continue to be traded on the NASDAQ Capital Market under the symbol STAF and will begin trading on a split-adjusted basis when the market opens today.

At a special meeting of stockholders held on June 21, 2021, Staffing 360’s stockholders had granted the company’s Board of Directors the discretion to effect a reverse stock split of Staffing 360’s common stock through an amendment to its Certificate of Incorporation at a ratio of not less than 1-for-2 and not more than 1-for-20, such ratio to be determined by the company’s Board of Directors.

At the effective time of the reverse stock split, every 6 shares of Staffing 360’s issued and outstanding common stock will be converted automatically into one issued and outstanding share of common stock without any change in the par value per share. Stockholders holding shares through a brokerage account will have their shares automatically adjusted to reflect the 1-for-6 reverse stock split. And it is not necessary for shareholders holding shares of the company’s common stock in certificated form to exchange their existing stock certificates for new stock certificates of the company in connection with the reverse stock split, although stockholders may do so if they wish.

The reverse stock split will affect all stockholders uniformly and it will not alter any stockholder’s percentage interest in the company’s equity, except to the extent that the reverse stock split would result in a stockholder owning a fractional share. Any fractional share of a stockholder resulting from the reverse stock split will be rounded up to the nearest whole number of shares. And the reverse stock split will reduce the number of shares of Staffing 360’s common stock outstanding from 39,166,528 million shares to approximately 6,527,755 million shares. The proportional adjustments will be made to the number of shares of Staffing 360’s common stock issuable upon exercise or conversion of Staffing 360’s equity awards, convertible preferred stock and warrants as well as the applicable exercise price.

KEY QUOTES:

“We are effecting this reverse stock split to raise Staffing 360’s common stock price in order to regain compliance with the NASDAQ Capital Market’s $1.00 per share minimum bid continued listing requirement. We believe the trading of our shares on a national market increases our visibility in the marketplace, improves liquidity, broadens and diversifies our shareholder base, and ultimately enhances long-term shareholder value.”

“The recent full forgiveness of our largest PPP loan of $10 million, along with building business momentum in Q1 and anticipated 20% revenue growth in Q2, are important steps in our continuing fiscal recovery from the COVID-19 pandemic. Over the next few quarters, we expect that the overall economic benefits of the mostly vaccinated populations in the US and UK will help to fuel our growth as we seek to establish sustainable profitable growth on our way toward our goal to build a profitable $500 million revenue company.”

— Brendan Flood, Chairman and Chief Executive Officer

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.