STAF - Staffing 360 Solutions launches $9.25M private placement
Staffing 360 Solutions (STAF -6.2%) entered into a securities purchase agreement with several institutional investors to purchase 4.68M shares in a private placement; it will also issue to the investors unregistered warrants. The purchase price for one share and one warrant to purchase one share is $1.975. The warrants have an exercise price of $1.85/share, will be immediately exercisable, and will expire five years from issuance. Gross proceeds from the private placement are expected to be ~$9.25M. Offering is expected to close on or about Nov.2. Net proceeds to be used for repayment of debt and general working capital purposes. Post closure, the company estimates that it will have ~$9.36M of debt compared with ~$55.4M as of Jan.2 indicating a significant reduction of ~83%.
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Staffing 360 Solutions launches $9.25M private placement