Staffing 360 Solutions faces Nasdaq delisting over equity shortfall

Published 16/08/2024, 21:42
Staffing 360 Solutions faces Nasdaq delisting over equity shortfall

Staffing 360 Solutions, Inc., a company specializing in staffing services, is on the brink of being delisted from the Nasdaq Stock Market. On Monday, the company received a notice from the Nasdaq Listing Qualifications Department for failing to meet the minimum stockholders’ equity requirement. The company had previously reported non-compliance with the Nasdaq's minimum equity standard, which mandates that listed companies maintain a stockholders' equity of at least $2.5 million.

The notice followed the Nasdaq’s review of Staffing 360 Solutions’ compliance plan submitted in June and early August. The Nasdaq staff concluded that the company's plan lacked definitive evidence of its ability to regain compliance in the near term or maintain it over time.

Staffing 360 Solutions has until August 20, 2024, to appeal the decision. If the company does not appeal, or if the appeal is unsuccessful, trading of its securities will be suspended on August 22, 2024, and the company will be formally delisted from Nasdaq.

The company intends to request a hearing before the Nasdaq Hearings Panel to appeal the delisting decision. This request will temporarily stay the suspension of trading and the delisting process until the Panel reaches a decision. However, there is no guarantee that the Panel will allow the company to remain listed on Nasdaq.

The potential delisting is a significant setback for Staffing 360 Solutions, as it raises concerns about its financial stability and ability to meet Nasdaq’s continued listing requirements. The company's management has not provided further comments on their plans to address the stockholders' equity shortfall or the implications of the delisting.

In other recent news, Staffing 360 Solutions, Inc. has initiated a 1-for-10 reverse stock split. The action follows approval from the company's stockholders at the annual meeting in December 2023, which granted the Board of Directors the authority to implement a reverse stock split with a ratio between 1-for-2 and 1-for-20.

The total number of shares of common stock will decrease from approximately 6.4 million to around 639,739, with adjustments also being made to the company's equity awards, convertible preferred stock, and warrants.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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