Staffing 360 Solutions Inc. (NASDAQ: STAF) stock gained by 7.65% at last close while the STAF stock-price rises by 52.2% in the after-hour trading session. Through the purchase of domestic and international staffing businesses in the United States and the United Kingdom, Staffing 360 Solutions, Inc. is executing an international buy-integrate-build strategy.
Staffing 360 Solutions has stated that it will reverse the stock split of its common stock, with one post-split share for every six pre-split shares. On Wednesday, June 30, 2021, at 5:00 p.m., the reverse stock split went into effect. The common stock of Staffing 360 will keep trading on the NASDAQ Capital Market under the symbol STAF, and it began trading on a split-adjusted basis on Thursday, July 1, 2021.
Staffing 360’s investors gave its Board of Directors authority to conduct a reverse stock split of Staffing 360’s common stock at a special meeting of stockholders held on June 21, 2021, by amending its Certificate of Incorporation at a ratio of not less than 1-for-2 and not more than 1-for-20, as decided by the Board of Directors of STAF.
Every six shares of Staffing 360’s issued and outstanding common stock will be immediately converted into one issued and outstanding share of common stock at the effective moment of the reverse stock split, with no changes in the par value per share. The 1-for-6 reverse stock split will be adjusted accordingly for stockholders who own shares via a brokerage account.
Except to the extent that the reverse stock split results in a shareholder holding a fractional share, the reverse stock split will affect all stockholders evenly and will not change any stockholder’s percentage stake in STAF’s equity. A stockholder’s fractional share will be adjusted up to the closest whole number of shares as a consequence of the reverse stock split. The reverse stock split will lower the number of outstanding shares of Staffing 360 common stock from 39,166,528 million to around 6,527,755 million.