Staffing 360 Solutions Inc (NASDAQ: STAF) will soon affect a reverse stock split of its common stock, and it has outlined the ratios. It says that the split will take the form of 1 post-split share for every 6 pre-split shares. The company expects the reverse stock split to swing into effectiveness probably at 5:00 p.m. on Wednesday.
The fate of Staffing 360’s common stock
Staffing 360’s common stock will continue trading on the NASDAQ Capital Market, but it will be on a split-adjusted basis upon the market opening set on Thursday, July 1, 2021. The stock will run under the symbol STAF.
On June 21, 2021, it was back that stockholders attended a special meeting where they gave the Board of Directors the powers to affect the common stock reverse stock split. The Board of Directors amended its Certificate of Incorporation initially, and that worked at a ratio of not less than 1-for-2. It didn’t also exceed the ratio of 1-for-20.
A close look at the reverse stock split
The reverse stock split period happens to be the conversion opportunity. Every six shares belonging to the company (issued and outstanding) are automatically converted to one issued and outstanding share of common stock. Thus, there won’t be any significant change in the par value per share.
Staffing 360 Solutions Inc provides the way forward for all the stockholders who have their shares in through brokerage accounts. The shares of all persons under this category will be automatically adjusted in such a way that they will reflect the 1-for-6 reverse stock split.
The Chairman and Chief Executive Officer Brendan Flood opines, “The recent full forgiveness of our largest PPP loan of $10 million, along with building business momentum in Q1 and anticipated 20% revenue growth in Q2, are important steps in our continuing fiscal recovery from the COVID-19 pandemic.