Staffing 360 Solutions sets date for reconvened Special Meeting

Staffing 360 Solutions, Inc. (NASDAQ:STAF), a company specializing in staffing services with a market capitalization of $2.63 million, announced today that its Special Meeting of stockholders, initially convened and then adjourned on Monday, February 3, 2025, will reconvene on Thursday, February 13, 2025. According to InvestingPro data, the company faces significant financial challenges, with a weak overall financial health score and concerning cash burn rate. The adjournment was to solicit additional proxies for a vote on the proposed merger with Atlantic International Corp. and A36 Merger Sub, Inc., detailed in an Agreement and Plan of Merger dated November 1, 2024, and amended on January 7, 2025.

The company reported that during the meeting held today, a quorum was present, with 847,317 shares represented. The stockholders approved an Adjournment Proposal, which allows the meeting to be postponed to secure more votes in favor of the merger agreement. This meeting comes at a crucial time for STAF, whose stock has experienced a significant 34.77% decline over the past week. The proposal received 828,626 affirmative votes from the shares of Common Stock and Series H Preferred Stock voting on an as-converted basis, with 14,142 against and 4,549 abstentions.

Staffing 360 Solutions has not indicated any changes to the record date for the Special Meeting, meaning only shareholders of record as of the close of business on January 8, 2025, are eligible to vote at the reconvened session.

The reconvened Special Meeting will be held to continue the voting process on the Merger Agreement Adoption Proposal. This proposal is a significant step in the company’s potential merger process, which requires approval from the majority of the company’s shareholders.

The company’s management urges all shareholders of record to cast their vote on this critical matter. Detailed information on how to attend and vote at the reconvened Special Meeting remains the same as outlined in the joint proxy statement/prospectus.

This news is based on the latest 8-K filing by Staffing 360 Solutions with the SEC and reflects the ongoing developments concerning the company’s proposed merger. For investors seeking deeper insights into merger implications and comprehensive financial analysis, InvestingPro offers exclusive access to over 10 additional key financial metrics and expert analysis tools.

In other recent news, Staffing 360 Solutions has faced a series of significant developments. The company’s shares are set to be delisted from the NASDAQ due to non-compliance with the minimum stockholders’ equity requirement. This decision follows the company’s failure to meet the continued listing standards, despite efforts and appeals to regain compliance.

Simultaneously, Staffing 360 Solutions has been actively restructuring its financial framework. The company entered into a Conversion Agreement with Jackson Investment Group, converting all outstanding principal of certain notes into approximately 5.6 million shares of newly designated Series I Preferred Stock. This strategic move aligns with the company’s ongoing merger plans with Atlantic International Corp.

In further financial restructuring efforts, Staffing 360 Solutions extended its credit agreement and the maturity dates of certain notes with MidCap Funding IV Trust and Jackson Investment Group. These extensions provide the company more time to manage its debt obligations.

Additionally, the company announced amendments to its merger agreement with Atlantic International Corp. and A36 Merger Sub Inc. The amendment stipulates conversion terms for certain Preferred Stocks and extends the merger’s termination date to March 31, 2025.

Lastly, during the company’s 2024 Annual Meeting of Stockholders, two Class II directors and one Non-Classified director were elected, ensuring experienced individuals will guide the company’s strategic direction. These are recent developments in the company’s ongoing efforts to strengthen its financial position and governance structure.

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