Staffing 360 Solutions Receives Additional Nasdaq Staff Determination Letter of Delinquency

Rhea-AI Summary

Staffing 360 Solutions, Inc. (STAF) received a notice from Nasdaq regarding a delinquency in filing its Form 10-K for the fiscal year ending January 1, 2022. The company plans to file the report post-audit completion. In a previous communication, Nasdaq granted a continued listing subject to specific compliance actions, including shareholder approval for a reverse stock split by May 26, 2022. The company remains confident in meeting these compliance requirements despite the filing delays.

Positive

• Company plans to file Form 10-K upon completion of audit.
• Nasdaq granted continued listing subject to compliance actions.
• Company is pursuing opportunities for accretive acquisitions in staffing.

Negative

• Delinquency in filing Form 10-K could impact investor confidence.
• Need for a reverse stock split may indicate financial distress.

NEW YORK, April 22, 2022 (GLOBE NEWSWIRE) -- Staffing 360 Solutions, Inc. (Nasdaq: STAF), a company executing an international buy-integrate-build strategy through the acquisition of staffing organizations in the United States and the United Kingdom, has received notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC of an additional determination of delinquency for not timely filing its Form 10-K report for the fiscal year ended January 1, 2022. The Company expects to file its Form 10-K upon completion of the Audit in the near term.

Previously, on April 12, 2022, the Company received a letter from Nasdaq notifying the Company that a Nasdaq Hearings Panel had, following a hearing, determined to grant the Company’s request for continued listing on Nasdaq, subject to the following: (i) on or about May 2, 2022, the Company will advise the Panel of the status of the proxy statement it plans to file to obtain shareholder approval for a reverse stock split, (ii) on or about May 23, 2022, the Company will advise the Panel on the status of the shareholder meeting it plans to hold to obtain approval of the reverse stock split, (iii) on or about May 26, 2022, the Company will effect a reverse stock split and (iv) on or before about June 22, 2022, the Company shall demonstrate compliance with the Bid Price Requirement by evidencing a closing bid price at or above $1.00 per share for a minimum of ten consecutive trading sessions. Notwithstanding the delay in filing the Form 10-K, which is a gating item for the filing of the proxy statement, the Company continues to believe that it can adhere to the compliance schedule set forth in the Panel decision letter.

About Staffing 360 Solutions, Inc.
Staffing 360 Solutions, Inc. is engaged in the execution of an international buy-integrate-build strategy through the acquisition of domestic and international staffing organizations in the United States and United Kingdom. The Company believes that the staffing industry offers opportunities for accretive acquisitions and as part of its targeted consolidation model, is pursuing acquisition targets in the finance and accounting, administrative, engineering, IT, and light industrial staffing space. For more information, visit http://www.staffing360solutions.com. Follow Staffing 360 Solutions on Facebook, LinkedIn and Twitter.

Forward-Looking Statements
This press release contains forward-looking statements, which may be identified by words such as "expect," "look forward to," "anticipate," "intend," "plan," "believe," "seek," "estimate," "will," "project" or words of similar meaning. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified; consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, our ability to retain our listing on the Nasdaq Capital Market; market and other conditions; the geographic, social and economic impact of COVID-19 on the Company’s ability to conduct its business and raise capital in the future when needed; weakness in general economic conditions and levels of capital spending by customers in the industries the Company serves; weakness or volatility in the financial and capital markets, which may result in the postponement or cancellation of customer capital projects or the inability of the Company’s customers to pay the Company’s fees; the termination of a major customer contract or project; delays or reductions in U.S. government spending; credit risks associated with the Company’s customers; competitive market pressures; the availability and cost of qualified labor; the Company’s level of success in attracting, training and retaining qualified management personnel and other staff employees; changes in tax laws and other government regulations, including the impact of health care reform laws and regulations; the possibility of incurring liability for the Company’s business activities, including, but not limited to, the activities of the Company’s temporary employees; the Company’s performance on customer contracts; negative outcome of pending and future claims and litigation; government policies, legislation or judicial decisions adverse to the Company’s businesses; the Company’s ability to access the capital markets by pursuing additional debt and equity financing to fund its business plan and expenses on terms acceptable to the Company or at all; and the Company’s ability to comply with its contractual covenants, including in respect of its debt agreements, as well as various additional risks, many of which are now unknown and generally out of the Company’s control, and which are detailed from time to time in reports filed by the Company with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. Staffing 360 Solutions does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law.

Investor Relations Contact:
Terri MacInnis, VP of IR
Bibicoff + MacInnis, Inc.
(818) 379-8500 x 2
terri@bibimac.com

FAQ

What recent notice did Staffing 360 Solutions (STAF) receive from Nasdaq?

Staffing 360 Solutions received a notice of delinquency for not timely filing its Form 10-K for the fiscal year ended January 1, 2022.

What actions must Staffing 360 Solutions take to maintain its Nasdaq listing?

The company must file a proxy statement for a reverse stock split and demonstrate compliance with the Bid Price Requirement by June 22, 2022.

When does Staffing 360 Solutions plan to file its Form 10-K?

The company expects to file its Form 10-K upon completion of its audit, which is anticipated soon.

What is the significance of the reverse stock split for STAF shareholders?

The reverse stock split is a requirement for the company to maintain compliance with Nasdaq listing standards and could impact share price and investor sentiment.