Staffing 360 Solutions shareholders approve merger agreement

Published 13/02/2025, 15:50
Staffing 360 Solutions shareholders approve merger agreement

Staffing 360 Solutions, Inc. (NASDAQ:STAF), a company specializing in staffing services with a market capitalization of $2.65 million, announced today that its shareholders have approved a definitive merger agreement with Atlantic International Corp. and A36 Merger Sub, Inc. The approval occurred during a special meeting of stockholders on Thursday. According to InvestingPro data, the company operates with a significant debt burden of $41.32 million and has been facing challenges with cash management.

The agreement, initially dated November 1, 2024, and subsequently amended on January 7, 2025, received a favorable vote from the majority of shareholders. The decision comes as the company’s stock has experienced significant volatility, with a 49.21% decline in the past week and currently trading at $1.62, well below its 52-week high of $5.69. The proposal to adopt the merger agreement garnered 846,432 votes in favor, 11,068 against, and 3,267 abstentions. There were no broker non-votes reported.

Additionally, shareholders approved a proposal to adjourn the special meeting to a later date if necessary to solicit additional proxies in case of insufficient votes to approve the merger. This motion received 842,076 votes for, 14,142 against, and 4,549 abstentions.

The record date for the special meeting was January 8, 2025, with 1,643,738 shares of common stock and 9,000,000 shares of Series H Convertible Preferred Stock entitled to vote. The Series H Preferred Stock voted on an "as converted" basis, representing voting power equal to 35,002 shares of common stock.

This merger is part of Staffing 360 Solutions’ strategic initiatives, as detailed in the joint proxy statement/prospectus filed on January 27, 2025. No other matters were considered or voted upon at this meeting. InvestingPro analysis reveals the company’s overall financial health score is rated as WEAK, with 13 additional key insights available to subscribers, including detailed financial metrics and future growth projections.

The company, headquartered in New York, NY, operates under the services-help supply services industry. The successful vote marks a significant step in the merger process, which is detailed in the company’s SEC filing. The information is based on a press release statement.

In other recent news, Staffing 360 Solutions has been actively making strategic moves. The company has set a date for a reconvened Special Meeting of stockholders to vote on a proposed merger with Atlantic International Corp. and A36 Merger Sub, Inc. In a parallel development, Staffing 360 Solutions is facing delisting from NASDAQ due to non-compliance with the minimum stockholders’ equity requirement.

Moreover, the company has entered into a Conversion Agreement with Jackson Investment Group, LLC, converting all outstanding principal of certain notes into approximately 5.6 million shares of newly designated Series I Preferred Stock. This move is in alignment with the company’s ongoing merger plans.

Staffing 360 Solutions has also extended its credit agreement and the maturity dates of certain notes with MidCap Funding IV Trust and Jackson Investment Group, LLC. This is part of the company’s financial restructuring efforts.

Lastly, the company has made amendments to its merger agreement with Atlantic International Corp. and A36 Merger Sub Inc., detailing the conversion of preferred stock and the extension of the merger’s termination date.

These recent developments are based on the company’s filings with the Securities and Exchange Commission and press releases.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.