GEE Group Inc. (JOB) stock surged by 1.38% at the last trading close while the JOB stock price continued to rise by 4.42% in after-hours trading after GEE Group announced its underwritten public offering.GEE Group Inc. is a professional staffing management company and the heir to jobs offices that have been in operation since 1893. Via the names of Access Data Consulting, Agile Resources, Ashley Ellis, General Employment, Omni-One, Paladin Consulting, and Triad, JOB provides specialist hiring services and technologies in the information technology, infrastructure, banking, and accounting specialties, as well as business staffing services.
What is happening?
On April 19, 2021, GEE Group announced the completion of its underwritten public offering of 83,333,333 shares of its common stock at a public offering price of $0.60 per share, for net revenue of nearly $50,000,000, before deducting the underwriting discount and commissions owed by GEE Group. GEE has also given the underwriters a 45-day offer to acquire up to an additional 12,499,999 shares of JOB’s common stock at the public offering price, minus the underwriting discount, to offset over-allotments, if any. GEE Group is offering all of the common stock shares for sale.
GEE Group is planning that the net proceeds of this deal in addition with available funds, will be used to repay approximately $55,000,000 in accrued indebtedness under JOB’s current Revolving Credit, Term Loan, and Security Agreement, with the balance and also going to general corporate purposes such as working capital and future acquisitions.
And the offering’s primary book-running manager was ThinkEquity which is a subsidiary of Fordham Financial Management.