Staffing 360 Solutions Announces Pricing of $2.5 million Public Offering of Common Stock
December 23 2020 - 9:00PM
Staffing 360 Solutions, Inc. (NASDAQ: STAF), a staffing company
executing an international buy-integrate-build strategy through the
acquisition of staffing organizations in the United States and the
United Kingdom, today announced that it has priced its previously
announced underwritten public offering of 4,188,405 shares of its
common stock at a public offering price of $0.60 per share, for
aggregate gross proceeds of approximately $2.5 million. In
addition, Staffing 360 Solutions has granted the underwriter a
30-day option to purchase up to an additional 628,260 shares of
common stock at the public offering price, less the underwriting
discounts and commissions. The offering is expected to close on or
about December 29, 2020, subject to customary closing conditions.
The Company intends to use 75% of the net
proceeds from the proposed offering to redeem a portion of its
outstanding note due September 30, 2022, and 25% of the net
proceeds from this offering to redeem a portion of its Series E
Preferred Stock.
H.C. Wainwright & Co. is acting as sole
book-running manager for the offering.
A shelf registration statement on Form S-3 (File
No. 333-230503) relating to the public offering of the shares of
common stock described above was filed with the Securities and
Exchange Commission (“SEC”) and was declared effective on April 11,
2019. The offering of the shares of common stock is being made only
by means of a prospectus supplement and accompanying prospectus
that forms a part of the registration statement. A preliminary
prospectus supplement and accompanying prospectus relating to the
offering have been filed with the SEC and are available on the
SEC's website located http://www.sec.gov. Electronic copies of the
final prospectus supplement and the accompanying prospectus will be
filed with the SEC and may be obtained, when available, from H.C.
Wainwright & Co., LLC, 430 Park Avenue, 3rd Floor, New York, NY
10022, by calling (646) 975-6996 or by emailing
placements@hcwco.com or at the SEC's website at
http://www.sec.gov.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy nor shall there be
any sale of these securities in any state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About Staffing 360 Solutions, Inc.Staffing 360
Solutions, Inc. is engaged in the execution of an international
buy-integrate-build strategy through the acquisition of domestic
and international staffing organizations in the United States and
United Kingdom. For more information, visit
www.staffing360solutions.com.
Forward-Looking StatementsThis
press release contains forward-looking statements, which may be
identified by words such as "expect," "look forward to,"
"anticipate" "intend," "plan," "believe," "seek," "estimate,"
"will," "project" or words of similar meaning. Forward-looking
statements are not guarantees of future performance, are based on
certain assumptions and are subject to various known and unknown
risks and uncertainties, many of which are beyond the Company's
control, and cannot be predicted or quantified, and include, among
others, statements regarding the consummation of the public
offering, the satisfaction of customary closing conditions related
to the public offering and the intended use of net proceeds from
the public offering; consequently, actual results may differ
materially from those expressed or implied by such forward-looking
statements. Such risks and uncertainties include, without
limitation, market and other conditions; the Company’s ability to
retain the listing of its common stock on the Nasdaq Capital
Market; the geographic, social and economic impact of COVID-19 on
the Company’s ability to conduct its business and raise capital in
the future when needed; weakness in general economic conditions and
levels of capital spending by customers in the industries the
Company serves; weakness or volatility in the financial and capital
markets, which may result in the postponement or cancellation of
customer capital projects or the inability of the Company’s
customers to pay the Company’s fees; the termination of a major
customer contract or project; delays or reductions in U.S.
government spending; credit risks associated with the Company’s
customers; competitive market pressures; the availability and cost
of qualified labor; the Company’s level of success in attracting,
training and retaining qualified management personnel and other
staff employees; changes in tax laws and other government
regulations, including the impact of health care reform laws and
regulations; the possibility of incurring liability for the
Company’s business activities, including, but not limited to, the
activities of the Company’s temporary employees; the Company’s
performance on customer contracts; negative outcome of pending and
future claims and litigation; government policies, legislation or
judicial decisions adverse to the Company’s businesses; the
Company’s ability to access the capital markets by pursuing
additional debt and equity financing to fund its business plan and
expenses on terms acceptable to the Company or at all; the
Company’s ability to achieve loan forgiveness under Paycheck
Protection Program; and the Company’s ability to comply with its
contractual covenants, including in respect of its debt agreements,
as well as various additional risks, many of which are now unknown
and generally out of the Company’s control, and which are detailed
from time to time in reports filed by the Company with the SEC,
including quarterly reports on Form 10-Q, reports on Form 8-K and
annual reports on Form 10-K. Staffing 360 Solutions does not
undertake any duty to update any statements contained herein
(including any forward-looking statements), except as required by
law.
Investor Relations Contacts:Harvey Bibicoff,
CEOBibicoff + MacInnis, Inc.(818) 379-8500 x1harvey@bibimac.com
Terri MacInnis, VP of IRBibicoff + MacInnis, Inc.(818) 379-8500
x2terri@bibimac.com
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