Staffing 360 Solutions (STAF) Stock Climbs On Asset Sale

Staffing 360 Solutions STAF Stock News

Staffing 360 Solutions Inc (NASDAQ: STAF) is making a run for the top int he market this morning, and for good reason. The company announced the sale of a key asset, bolstering the company’s balance sheet. Here’s what’s going on:

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STAF Stock Rockets On Asset Sale

In the press release, Staffing 360 Solutions reminded investors that it is executing an international buy-integrate-build strategy through the acquisition of staffing organizations in the Untied States and United Kingdom. To that end, the company has completed the sale of its firstPRO360 business in exchange for $3.3 million in cash.

In the release, STAF said that it would use the proceeds from the sale to redeem shares of preferred stock held by Jackson Investment Group, LLC. In a statement, Brendan Flood, Chairman and CEO at STAF, had the following to offer:

In the present challenging environment, when Neil Ellison, President of firstPRO 360, expressed interest in acquiring the company, we saw it as the right move at the right time for both of us. The sale provides us with the opportunity to improve our balance sheet and allow our management team to focus on doing what it does best.

Our overall business continues to improve week-over-week and we expect to enter the fourth quarter having returned to pre-COVID sales levels.

The above statement was followed up by Neil Ellison, President of firstPro. Here’s what he had to say:

I value the support, experience and relationships gained while working with Brendan and his Staffing 360 team. I’m now honored with the opportunity to lead this incredible team as both owner and President. We’ll continue to operate under the firstPRO Recruitment name and provide the same excellent services to our many clients.

This Is Big News

The news released by Staffing 360 Solutions this morning is overwhelmingly positive. While COVID-19 has created a challenging environment for this type of business model, the sale of the asset will allow the company to improve its balance sheet with the flood of a few million dollars through the door.

Moreover, there has been heavy short volume recently. As a result, the company’s positive news seems to have triggered a short squeeze in STAF stock.

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