News Details – Smallcapnetwork
Staffing 360 Solutions Graduates to a NASDAQ Listing. This is Where it Gets Fun.
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February 2, 2024

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PDT

Bingo! Staffing 360 Solutions (STAFD) said it was in the works a year ago, and then two weeks ago said it was only a matter of time. Today, the very thing the company made clear was coming became a reality. What's that? Staffing 360 Solutions is now a NASDAQ-listed company. Well, the listing has been approved. It won't technically be a NASDAQ-listed company until tomorrow, the 29th, when it begins trading back under the ticker STAF. Honestly though, this has all happened so fast you may still find it trading under the temporary STAFD ticker for a bit longer as the NASDAQ and data suppliers make the adjustment. Either way, come Tuesday, Staffing 360 Solutions has graduated to a senior exchange. This morning's press release is below. Most of you will know what this means, so we won't preach an entire sermon about the upside of upgrading from an OTC listing to an exchange listing. Suffice it to say when you put the "NASDAQ" prefix in front of your ticker, the analyst community starts to take more notice, institutions can start to buy your stock (this may be the biggest upside), it's easier to raise funds if you need to, and the market just generally gives you more respect... the kind that can help buoy your stock's price... ... not that STAF/STAFD needed any help on that front. This thing's up about 43% since we started covering it again back on the 15th. Hope you picked some up then, although after today's news, I'd suspect there's plenty more upside to go. Yet, as big as this news is, I still contend the most exciting aspect of the Staffing 360 Solutions story isn't the NASDAQ listing. It's the crazy amount of growth the company has seen over the past year or so, and the amount of growth still in the cards over the next couple of years. Just as a refresher, when we first looked at STAF way back in May of last year, the company had just posted trailing-twelve month revenue of $20.5 million, with most of that ($16.9 million of it, to be exact) coming in the last of those four quarters after a couple of key acquisitions. It was an impressive total and an impressive growth figure for a company that - for all intents and purposes - didn't exist a year prior. However, it was just the beginning of a growth story that could only be considered jaw-dropping. Fast forward to September 15th... just a couple of weeks ago, when we resumed our analytical coverage of STAF. By that point, the company was boasting trailing-twelve month revenue of $128.8 million. Yep, that's $212% growth. All of a sudden, that target of $300 million in annual revenue Staffing 360 Solutions was talking about a year and a half ago doesn't seem crazy at all. On that note, I do want to explain something about Staffing 360 Solutions today I haven't explained yet -- how it's making all these acquisitions. Long story made short, STAF/STAFD is being very picky about the deals it does. It's strictly looking for targets that are already established and will be immediately accretive to the top and bottom line. That way, these buyouts are largely self-funding. Better yet though the terms of each one of these buyouts is different, they're not all-cash deals. They're being a facilitated by a combination of cash, stock, and even earn-outs to keep the acquired company motivated to continue producing, and growing. It's a brilliant strategy simply because it's rather easy on current shareholders since it doesn't burden them with too much dilution, nor does it saddle the company with too much debt or not enough cash. It's a well-balanced approach, facilitating - if my math is right - a total of six acquisitions so far. The really cool part: Now that Staffing 360 Solutions can offer a NASDAQ-listed stock as part of the acquisition package, future deals should become effectively cheaper since there's no unspoken risk-premium factored in which would normally be present for an OTC-listed stock. To that end, don't think for a minute the growth-by-acquisition effort is going to slow down now that the company is sitting on top of the world, so to speak. There are more than a dozen other possible acquisitions the company has in mind, which collectively do about $500 in annual revenue between them. STAF would only need to bring a fraction of them into the fold to reach the $300 million mark in annual sales. After that, the company should be able to move from its current EBITDA profitability to outright operational profitability. The craziest part of all? This is still only a $30.2 million company, with $128.8 million in annual sales in tow, and $300 million in annual revenue on the way. It's also boasting a positive EBITDA, and if you look closely over the past year or so, you'll see Staffing 360 Solutions has actually been quite close to a GAAP profit given the size of its top line. The stock's price could justifiably be ten times what it is now, and it still would only be valued at a trailing price/sales ratio of 2.3... the S&P 500's typical price/sales ratio. And, that doesn't factor in the sales growth to $300 million, which is expected to materialize over the course of the next couple of years. I suspect this is going to be one of those stocks where everybody has an "aha" moment at the same time. Today's news may well be that catalyst. Here it is. Staffing 360 Solutions Announces Uplisting to NASDAQ Company to Begin Trading on the NASDAQ Capital Market Under the Ticker STAF NEW YORK, NY--(Marketwired - September 28, 2015) - Staffing 360 Solutions, Inc. (OTCQB: STAFD), a public company executing a global buy-and-build strategy through the acquisition of staffing organizations with operations in the US and UK, today announced that it has received approval to list the Company's common stock on NASDAQ. Trading of the Company's securities on the NASDAQ Capital Market will become effective upon the opening of trading on Tuesday, September 29, 2015 under the stock symbol STAF. "Uplisting represents a historic day for our Company," said Brendan Flood, Executive Chairman of Staffing 360 Solutions. "NASDAQ opens the doors to numerous opportunities for growth and it will play an important role in our efforts to enhance the value of Staffing 360 Solutions moving forward. We are better positioned to advance our stated mission of reaching $300 million in revenue as we build a major international staffing company through organic growth and accretive acquisitions." Matt Briand, President and CEO, remarked, "Everyone in our organization has played a crucial part in this journey, and it is only through the hard work and dedication of our employees, as well as the support of our loyal shareholders, that we have been able to reach this major inflection point." Before trading on NASDAQ commences, the Company's common stock will continue to be quoted on the OTCQB under its existing symbol STAFD until the close of trading today, September 28, 2015. "As we become a NASDAQ-listed company, our ability to communicate our progress with a broader audience, raise the visibility of our M&A strategy, and generate more value for our shareholders will improve dramatically," concluded Darren Minton, Executive Vice President of Staffing 360 Solutions. About Staffing 360 Solutions, Inc. Staffing 360 Solutions, Inc. (OTCQB: STAF) is a public company in the staffing sector engaged in the execution of a global buy-and-build strategy through the acquisition of domestic and international staffing organizations with operations in the US and UK. The Company believes the staffing industry offers opportunities for accretive acquisitions that will drive its annual revenues to $300 million. As part of its targeted consolidation model, the Company is pursuing acquisition targets in the finance and accounting, administrative, engineering and IT industries. For more information, please visit: www.staffing360solutions.com. Follow Staffing 360 Solutions on Facebook, LinkedIn and Twitter. Forward-Looking Statements Certain matters discussed within this press release are forward-looking statements including, but not limited to the timing and ability to enter into any additional acquisitions, as well as the size of future revenue. Although Staffing 360 Solutions, Inc. believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Specifically, in order for the Company to achieve annualized revenues of $300 million, the Company will need to successfully raise sufficient capital, to consummate additional target acquisitions, successfully integrate any newly acquired companies, organically grow its business, successfully defend current and any potential future litigation, as well as various additional contingencies, many of which are unknown at this time and generally out of the Company's control. The Company can give no assurance that it will be able to achieve these objectives. Staffing 360 Solutions does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law. Factors that could cause actual results to differ materially from expectations include general industry considerations, regulatory changes, changes in local or national economic conditions and other risks detailed from time to time in Staffing 360 Solutions' reports filed with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. Contact Information Investor Relations Firm: PCG Advisory Group Stephanie Prince, Managing Director 646.762.4518 Corporate Investor Contact: Staffing 360 Solutions, Inc. Darren Minton, Executive Vice President 212.634.6413 Financial Contact: Staffing 360 Solutions, Inc. Wade Pearson, Senior Vice President of Finance 212.634.6423