Item 1.01 Entry Into a Material Definitive Agreement.

On February 7, 2023, Staffing 360 Solutions, Inc. (the "Company") entered into a securities purchase agreement (the "Purchase Agreement") with an institutional, accredited investor (the "Investor") for the issuance and sale, in a best efforts public offering (the "Offering"), of (i) 315,000 units (the "Units"), each Unit consisting of one share (the "Shares") of the Company's common stock, par value $0.00001 per share (the "Common Stock"), and one warrant to purchase one share of Common Stock (the "Warrants"), and (ii) 1,569,516 pre-funded units (the "Pre-Funded Units"), each Pre-Funded Unit consisting of one pre-funded warrant (the "Pre-Funded Warrants") to purchase one share of Common Stock and one Warrant. The public offering price was $2.6532 per Unit and $2.6522 per Pre-Funded Unit. The Offering closed on February 10, 2023.

Subject to certain limitations described in the Pre-Funded Warrants, the Pre-Funded Warrants are immediately exercisable and may be exercised at a nominal consideration of $0.001 per share any time until all of the Pre-Funded Warrants are exercised in full. A holder will not have the right to exercise any portion of the Warrants or the Pre-Funded Warrants if the holder (together with its affiliates) would beneficially own in excess of 4.99% or 9.99%, respectively (or at the election of the holder of the Warrants, 9.99%) of the number of shares of Common Stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the Warrants or the Pre-Funded Warrants, respectively. However, upon notice from the holder to the Company, the holder may increase the beneficial ownership limitation pursuant to the Warrants, which may not exceed 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the Warrants, provided that any increase in the beneficial ownership limitation will not take effect until 61 days following notice to the Company.

In connection with the Offering, the Investor entered into a warrant amendment agreement with the Company (the "Warrant Amendment Agreement") to amend the exercise price of certain existing warrants to purchase up to an aggregate of 876,654 shares of Common Stock that were previously issued to the Investor, with an exercise price of $5.85 per share and an expiration date of January 7, 2028. Pursuant to the Warrant Amendment Agreement, the amended warrants have a reduced exercise price of $2.47 per share following the closing of the Offering.

The Company intends to the net proceeds from the Offering for general working capital purposes.

H.C. Wainwright & Co., LLC ("Wainwright") acted as the Company's exclusive placement agent in connection with the Offering, pursuant to that certain engagement letter, dated as of January 4, 2023, as amended, between the Company and Wainwright (the "Engagement Letter"). Pursuant to the Engagement Letter, the Company paid Wainwright (i) a cash fee equal to 7.5% of the aggregate gross proceeds of the Offering, (ii) a management fee of 1.0% of the aggregate gross proceeds of the Offering, and reimbursed certain expenses and legal fees. In addition, the Company issued to Wainwright or its designees, warrants (the "Placement Agent Warrants") to purchase 141,339 shares of Common Stock (the "Placement Agent Warrant Shares") at an exercise price equal to $3.3165 per share. The Placement Agent Warrants are exercisable immediately upon issuance and have a term of exercise equal to five years from the date of the Purchase Agreement.

The Units, the Pre-Funded Units, the Shares, the Pre-Funded Warrants, the Warrants, the Warrant Shares, the Placement Agent Warrants and the Placement Agent Warrant Shares were offered by the Company pursuant to a Registration Statement on Form S-1, as amended (File No. 333-269308), initially filed on January 20, 2023 with the Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended, and declared effective on February 7, 2023.

The Engagement Letter and the Purchase Agreement contain customary representations and warranties, agreements and obligations, conditions to closing and termination provisions. The foregoing descriptions of terms and conditions of the Purchase Agreement, the Pre-Funded Warrants, the Warrants, and the Placement Agent Warrants do not purport to be complete and are qualified in their entirety by the full text of the form of the Purchase Agreement, the form of the Pre-Funded Warrant, the form of the Warrant and the form of the Placement Agent Warrant, which are attached hereto as Exhibits 10.1, 4.1, 4.2, and 4.3, respectively.




Item 8.01 Other Events.

On February 7, 2023, the Company issued a press release announcing the pricing of the Offering. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is hereby incorporated by reference herein.

On February 10, 2023, the Company issued a press release announcing the closing of the Offering. A copy of the press release is attached as Exhibit 99.2 to this Current Report on Form 8-K and is hereby incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.





(d) Exhibits.




Exhibit No.   Description
4.1             Form of Pre-Funded Warrant
4.2             Form of Warrant
4.3             Form of Placement Agent Warrant
10.1            Form of Securities Purchase Agreement
99.1            Press Release, dated February 7, 2023
99.2            Press Release, dated February 10, 2023
104           Cover Page Interactive Data File (embedded within the Inline XBRL
              document)

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