Staffing 360 Solutions extends credit agreement with MidCap

Staffing 360 Solutions, Inc., a company specializing in staffing services, has amended its credit and security agreement with MidCap Funding IV Trust, effectively extending the commitment expiry date to December 20, 2024. This extension was formalized on Thursday, December 13, 2024, through Amendment No. 33. The company, currently valued at $3.31 million in market capitalization, operates with total debt of $41.32 million according to InvestingPro data.

The amendment involves multiple entities under Staffing 360 Solutions, including Monroe Staffing Services, LLC, and several others, collectively referred to as the Borrowers. The Credit and Security Agreement originally dated April 8, 2015, has undergone multiple amendments, with this being the thirty-third. InvestingPro analysis reveals concerning financial health indicators, with a current ratio of 0.32 and short-term obligations exceeding liquid assets. Subscribers can access 10+ additional financial health indicators.

In conjunction with this amendment, a Limited Consent was also entered into with Jackson Investment Group, LLC, which allows for the company’s entry into Amendment No. 33. This move ensures compliance with the terms of the intercreditor agreement between the two parties.

The details of Amendment No. 33 were not fully disclosed in the press release statement. However, the extension of the credit facility is a significant development for Staffing 360 Solutions, providing continued financial flexibility for the company's operations. Despite generating annual revenue of $176.82 million, the company reported negative EBITDA of -$10.49 million in the last twelve months.

Staffing 360 Solutions is incorporated in Delaware and is listed on NASDAQ under the ticker STAF. The company's headquarters are located at 757 Third Avenue, 27th Floor, New York, NY 10017. The company was formerly known as Golden Fork Corp, with a name change occurring on August 20, 2010.

This financial maneuver is part of the company's ongoing efforts to manage its capital structure and support its business activities. The information regarding this amendment is based on a recent SEC filing by the company. For comprehensive analysis of STAF's financial health, debt metrics, and valuation indicators, consider subscribing to InvestingPro.

In other recent news, Staffing 360 Solutions has been navigating significant financial developments. The company, facing Nasdaq delisting due to non-compliance with the minimum stockholders’ equity requirement, has been granted a conditional extension to continue its listing. This comes after the company's initial plan to regain compliance was found insufficient by the Nasdaq Listing Qualifications Department.

Staffing 360 Solutions has also been active in managing its financial obligations, amending its credit agreement with MidCap Funding IV Trust, and accommodating obligations up to $2,000,000 from a settlement with Pamela D. Whitaker. In a strategic shift, the company extended the maturity dates of certain notes through an agreement with Jackson Investment Group, LLC, aiming to fortify its financial structure.

The company has also initiated an equity securities exchange with an institutional investor, issuing new shares and a pre-funded warrant, leading to the cancellation of an outstanding warrant previously held by the investor. These are recent developments that investors should be aware of.

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