NEW YORK, NY–(Marketwired – January 30, 2017) – Staffing 360 Solutions, Inc. (NASDAQ: STAF), a public company executing a global buy-and-build strategy through the acquisition of staffing organizations in the United States and in the United Kingdom, today announced the successful closing of its previously announced $7.4 million financing with Jackson Investment Group, LLC.
“This marks a significant milestone in our corporate history,” stated Brendan Flood, Executive Chairman of Staffing 360 Solutions. “With the financing from Jackson Investment Group officially closed, this gives us the opportunity to refinance debt, support our operations with working capital and positions us to continue our high-growth M&A strategy. Not only does this transaction help strengthen our balance sheet, which has been a major focus of ours, it establishes a strategic relationship with an industry partner that has decades of staffing industry experience. I fully expect 2017 will be an exciting time for our Company as we continue to fuel our growth.”
The transaction with Jackson Investment Group closed with the passage of certain proposals at the Company’s Annual Shareholder Meeting, which occurred on January 26, 2017 and is more fully detailed in the Form 8-K filed with the SEC on January 27, 2017.
“We have received a major vote of confidence with this financing,” said David Faiman, Chief Financial Officer of Staffing 360 Solutions. “Our selective acquisition strategy has allowed Staffing 360 to reach approximately $190 million in annualized revenues in a relatively short period of time. With this funding in place and our balance sheet strengthened, we believe our management team is now in a strong position to direct our focus toward operations, the capital markets and our M&A pipeline. We look forward to working with Richard Jackson and his organization as we take Staffing 360 Solutions to the next level.”
Jackson Investment Group is a private investment firm that manages over $1.5 billion of assets and owns one of the largest staffing companies in the United States. The firm is led by staffing industry entrepreneur Richard Jackson, who has been a successful entrepreneur, owning over 20 staffing companies during his 40 years in the industry.
As previously announced, the $7.4 million in secured debt has a term of 18 months and an interest rate of 6%, payable at maturity. The debt includes 1,650,000 shares of common stock of the Company that was issued to the investor at closing. The principal balance of the debt is non-convertible, however, up to 50% of the interest may be paid in the form of common stock valued at $2.00 per share.
In connection with the financing, Staffing 360 Solutions issued to Jackson Investment Group 3,150,000 common stock purchase warrants, which are cash-exercise only, and have an above-market strike price of $1.35. The transaction was in reliance upon exemptions from registration pursuant to the provisions of Section 4(a)(2) or Rule 506 of Regulation D under the Securities Act of 1933, as amended.
About Control Solutions International, A Division of Staffing 360 Solutions:
For over 25 years, Control Solutions has provided Internal Audit partnering services to the governmental, public and private sectors. Our firm has helped thousands of organizations maximize the effectiveness of their internal audit and risk management objectives year after year. We provide a full suite of robust Information Technology Audit and Risk Management Services which encompass practice subject matter experts and highly skilled support staff proficient in executing reviews of General Controls, Information Security, Applications, IT Infrastructure, Governance, Pre/Post Implementation System Reviews, Data Analytics Automation, Data Mining, Disaster/Business Continuity Services, Information Technology Risk Assessments, and highly sophisticated Computer Forensics/E Discovery Services.