Staffing 360 Solutions Inc. (NASD: STAF), a staffing provider operating in the US and UK, announced changes to its capital structure as part of an effort to get back in compliance with Nasdaq listing requirements. The company had been notified in April that it did not comply with the minimum $2.5 million net shareholders’ equity requirement for listing. Staffing 360 had until last Friday to get back into compliance.
The changes include the conversion of a $13 million term loan held by the Jackson Investment Group LLC into a newly created class of preferred stock.
According to a filing with the US Securities and Exchange Commission, Staffing 360 closed the debt exchange agreement on Nov. 15 that gives Jackson Investment Group 13,000 shares of the new series E convertible preferred stock.
“Maintaining our Nasdaq compliance has been a key priority for our leadership team,” Chairman and CEO Brendan Flood said. “We are committed to our goal of building a profitable $500 million revenue business and driving the value of our stock for our shareholders. We are grateful to JIG for its continued partnership and belief in our long-term vision and management team.”
Staffing 360 last week reported third-quarter revenue rose 41.7% when including acquisitions but declined in its core businesses.