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Tag: Staffing 360 Solutions

  • Staffing 360 (STAF) Sparks Pre-Market Rally Amid Exciting Merger News

    Staffing 360 (STAF) Sparks Pre-Market Rally Amid Exciting Merger News

    Pre-market activity for Staffing 360 Solutions, Inc. (NASDAQ: STAF) is booming, as seen by the shares’ recent 115.7% gain to $3.71. The announcement of a definitive merger agreement with Atlantic International Corp. preceded this spike. Atlantic will purchase all outstanding shares of Staffing 360’s common stock under this arrangement, which has been approved by the boards of both companies.

    Merger Details and Shareholder Impacts

    Staffing 360 (STAF) stockholders will get 1.202 Atlantic shares for every Staffing 360 share under the terms of the transaction. The stockholders of Atlantic and Staffing 360 will own around 90% and 10% of the newly established business, respectively, when it is finished. The acquisition should conclude in ninety days, pending shareholder and regulatory clearances. Following the merger, Staffing 360 will continue to be run by Atlantic as a wholly owned subsidiary with its current leadership.

    Atlantic’s Prospects for Strategic Growth

    It is estimated that the acquisition will increase Atlantic’s business by around 50%, leading to an annual revenue run rate of about $620 million. Atlantic’s position in the staffing business is anticipated to improve as a result of this increased income base, offering a wider range of services and a wider global reach. In order to meet the rising need for flexible and outsourced labor solutions in the US, the merged business hopes to improve its service capabilities through the merger.

    Enhanced Market Position and Financial Prospects

    The merger positions the combined entity to leverage greater scale, liquidity, and capital access, attributes often associated with premium valuations in the workforce solutions sector. By merging, Atlantic and Staffing 360 also aim to achieve cost efficiencies, reducing Atlantic’s operating expense ratio and potentially improving overall profitability. Atlantic has identified several avenues for enhancing operational efficiencies within the first year post-merger, which are expected to further drive down costs.

    Resilience and Diversification in Customer Base

    Together, Atlantic and Staffing 360 will cater to a diverse client base of over 1,500 customers, none of which contribute more than 5% to total revenue. This diversified customer portfolio, grown organically and through mergers and acquisitions, equips the combined company to withstand market fluctuations and expand its influence in the staffing industry. The merger underscores the strategic alignment and commitment to sustained growth from both organizations.

  • What Is Driving The Staffing 360 (STAF) Stock Higher In Early Trades?

    As of the last check, shares of Staffing 360 Solutions Inc. (STAF) were up 4.30% on the charts to trade at $2.91. STAF stock was up 18.28% in the premarket trades to $3.30 today. Staffing 360 Solutions stock fell -9.12% on Friday to close at $2.79. Staffing 360 Solutions stock traded at a volume of 1.82 million, which was lower than the average volume of 3.05 million over the last three months. The STAF stock fluctuated between $2.72 and $3.03 during the trading session. STAF stock has been surging since receiving full forgiveness of its PPP loans.

    How much forgiveness has STAF Stock?

    Through the acquisition of domestic and international staffing agencies in the United States and the United Kingdom, Staffing 360 Solutions is executing an international buy-integrate-build strategy. Staffing 360 Solutions believes the staffing industry offers opportunities for acquisitions accretive to its bottom line, and has targeted the areas of finance and accounting, administrative, engineering, information technology, and light industrial staffing for integration as part of its targeted consolidation model.

    On Thursday, August 12, 2021, Staffing 360 Solutions will host a conference call to present its fiscal second quarter and six-month financial results, announced the company in a press release today.

    • The call is scheduled to begin at 9:00 am Eastern Time.
    • During the conference call, STAF will discuss financial results, the COVID-19 environment, and recent positive developments.
    • Following the market close on August 11, 2021, Staffing 360 Solutions will issue related press releases.

    Management will discuss the following during the call:

    • The Small Business Administration (SBA) recently fully forgiven STAF’s 19.4 million Paycheck Protection Program (PPP) loans.
    • As of the past twelve months, Staffing 360 Solutions’ debt has been reduced by 70.4% resulted in a materially improved balance sheet.
    • In addition to the 70.4% debt reduction obtained by STAF, $2,080,000 was also released as part of the redemption feature.
    • Approximately $5.0 million paid on July 23, 2021 towards the outstanding note due September 30, 2022, as well as featured amount held in escrow since STAF’s FirstPRO sale to redeem Series G Preferred, was released.
    • Jackson Investment Group (JIG) has a conversion feature on the Series G that allows it to convert all of its outstanding Series G and G-1 shares back into 12% notes, meaning that approximately $5.7 million should be converted back into series G notes.
    • Management expects this conversion to take place soon.
    • In addition, STAF will discuss revenue and gross profit growth over the past year.

    Participating in the conference call:

    The call will begin at 9:00 am ET on August 12, 2021, so participants will need to dial in five minutes previously. Interested parties can also follow STAF’s call on-line by visiting http://public.viavid.com/index.php using ID 145866. A recording of this call will be made available on the Staffing 360 Solutions (STAF) website for 90 days. The STAF call replay can be accessed by dialing 844-512-2921 between August 12, 2021, and August 15, 2021, at 11:59 p.m. ET.

  • Staffing 360 Solutions, Inc. (STAF) Stock Skyrockets Following Announcement of Reverse Stock Split

    Staffing 360 Solutions, Inc. (STAF) stock prices were down by 7.43% as of the market closing on June 30th, 2021, bringing the price per share down to USD$0.5744 at the end of the trading day. Subsequent pre-market fluctuations saw the stock skyrocket by a staggering 552.86%, bringing it up to USD$3.75.

    Reverse Stock Split

    June 30th, 2021 saw the company announce its intent to implement a reverse stock split of its common stock at a ratio of 6 pre-split shares being consolidated into 1 post-split share. The stock split went into effect at 5:00 pm EDT on June 30th, 2021, with the company’s shares continuing to be traded on the NASDAQ Capital Market under the STAF ticker symbol. The shares will begin trading on a split-adjusted basis when the market opens on July 1st, 2021.

    Details of the Reverse Split

    The company’s Board of Directors were authorized to effect a reverse stock split on June 21st, 2021 at a special meeting of stockholders, with the amendment to the Certificate of Incorporation allowing for a ratio of at least 1-for-2 and not more than 1-for-20. While the stock split will not affect the percentage interest of any stockholder in the company’s equity, there will be cases where stockholders will own a fractional share. In such cases, the share will be rounded up to the nearest whole number of shares. The number of common stock outstanding will go from 39,166,528 to 6,527,755.

    Loan Forgiveness

    The company recent reported having been granted full forgiveness by the Small Business Administration for the USD$10 million Paycheck Protection Program loan. The loan was given to Monroe Staffing Services, LLC, an indirect wholly owned subsidiary of STAF. Since, the company has applied for further forgiveness of USD$9.4 million in PPP loans, with management confident in their being written off. Cumulatively, STAF has achieved a 55% reduction in its debt over the past year.

    Q2 2021 Financial Reports

    STAF forecasts financial reports for Q2 2021, ended July 3rd, 2021, to indicate roughly 20% year-over-year growth in revenue up to USD$52 million. Gross profits for the quarter are also expected to be up by 20%, with reports of USD$457,000 in operating profit as compared to USD$1.5 million operating loss in Q2 2020.

    Future Outlook for STAF

    With the drastic change seen by its stock price as a result of the reverse stock split, STAF is poised to capitalize on its continued listing on the Nasdaq Capital Market. Investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Staffing 360 Solutions, Inc. (STAF) stock is Popping High: What’s Going on?

    Staffing 360 Solutions, Inc. (STAF) stock announced improved anticipated second quarter 2021 financial results after which the STAF stock price saw an uptrend of 14.46% to reach $0.69 a share as of this writing. The stock went high by 1.62% at the previous closing. Let’s check out the recent events in detail.

    Second Quarter 2021 Anticipated Financial Results:

    Based on eleven weeks’ good performance through the mid of June in its three operating segments, the STAF stock anticipates revenue growth of 20% over the year which fulfills the growth estimate previously announced in the first-quarter conference call. 20% anticipated gross profit for the second quarter of 2021 is reported today which is also aligned with the previous estimate.

    The anticipated revenue for the second quarter is more than $52 million and $457,000 operating profit is reported as compared to $1.5 million loss second quarter of 2020. STAF’s gross profit recovery and its cost-saving initiatives have driven the gross profit growth. The operating expenses are anticipated to be $8.2 million in the second quarter of 2021 as compared to $9.0 million in the same quarter of 2020.

    Materially Reduced Interest Expense:

    The completion of interest raises in December 2020, February 2021, and April 2021 has materially reduced the interest expense on the income statement of STAF stock. The interest charge of $2.4 million reported in the first quarter of 2020 reduced to $1.2 million in the first quarter of 2021. Similarly, the $2.1 million interest charge reported in the second quarter of 2021 reduced to $1.1 million in the second quarter of 2021. This means the interest charges were reduced by 50% in the first six months of 2021. Consequently, the STAF stock expects positive net income for the second quarter of 2021.

    Loan Forgiveness:

    Staffing stock recently received the notification from small business administration according to which $10 million PPP loan has been forgiven to the Monroe Staffing Services, LLC, which is an indirect subsidiary of STAF stock. Staffing 360 Solutions has applied for the forgiveness of additional PPP loans of $9.4 million and is optimistic that the stock would get the forgiveness for the remaining loans.

    Conclusion:

    Investors are responding to the anticipated second quarter 2021 financial results announced by STAF stock today. The COVID-19 pandemic had badly affected the business, but stock is now in the recovery phase after various cost-saving initiatives. STAF stock cumulative debt reduced to 55% in the last 12 months in which $10 million loan forgiveness is also included. Though the penny stock is improving its balance sheet, still investors need to cautious before adding this stock to their portfolio.