Staffing 360 Solutions announces above market conversion of $3.3m debt into equity
A total of eleven (11) note holders, including the Company's Executive Chairman, Brendan Flood, and CEO, Matt Briand, participated in this conversion. This debt into equity conversion will reduce Staffing 360 Solutions' leverage ratio, as well as monthly interest expenses, allowing management more flexibility to continue its Pathway to Profitability. Furthermore, in exchange for certain equity consideration, an additional Initio note holder agreed to defer all principle and interest payments due under their respective note for 4 1/2 years.
"This conversion of debt into equity is a major milestone for the Company as we strive to improve our balance sheet and cash flow," stated Flood. "As two of the largest note holders, Matt and I believe this latest achievement demonstrates our deep faith in Staffing 360, our quality clients and our passionate team of employees. Although the share price has declined over the past several weeks, we do not believe this reflects the current outlook of the Company. We believe our conversion at $1.00 per share demonstrates our firm commitment to Staffing 360's long-term goals."
Briand added, "Working with note holders that share our strategic vision to increase their vested interest in the Company underscores our strong belief in the Pathway to Profitability and the strategic direction of Staffing 360 Solutions. Our management team is moving wholeheartedly to execute this strategy and we remain highly focused on continuing to grow our business both organically and through highly selective acquisitions."
The management team previously mentioned during its fiscal Q1 earnings conference call that the conversion of debt into equity would result in a non-cash accounting charge. Further details will be available in the Company's upcoming 10-Q filing for the fiscal second quarter ended November 30, 2014.