Staffing 360, Inc. [NASDAQ: STAF] disclosed Wednesday that it has decided to start the reverse stock split of its common stock at a ratio of 1 post-split share for every 6 pre-split shares. The reverse stock split will become active at 5:00 p.m. on Wednesday, June 30, 2021. Staffing 360’s common stock will continue to be traded on the NASDAQ Capital Market under the symbol STAF and will commence trading on a split-adjusted basis when the market opens on Thursday, July 1, 2021.
The stockholders of Staffing 360 granted the Company’s Board of Directors the option to effect a reverse stock split of Staffing 360’s common stock through a change to its Certificate of Incorporation at a ratio of not less than 1-for-2 and not more than 1-for-20, such ratio to be determined by the Board of Directors of the firm at a special meeting of stockholders held on June 21, 2021.
Staffing 360, Inc. [NASDAQ: STAF] shares were trading down 9.25% at the time of writing on Wednesday. Staffing 360, Inc.’s share price went from a low point around $0.51 to briefly over $3.34 in the past 52 weeks, though shares have since pulled back to $0.56. STAF market cap has remained high, sitting $24.61M at the time of writing.
Furthermore, the reverse stock split will leave an impact on all stockholders in the same way. It will not change any stockholder’s percentage interest in the equity of the firm, except to the degree that the reverse stock split would lead to a stockholder owning a fractional share.