Attached files
file | filename |
---|---|
EX-99.3 - ADDITIONAL EXHIBITS - HireQuest, Inc. | exh993proforma.htm |
EX-99.2 - ADDITIONAL EXHIBITS - HireQuest, Inc. | exh992snellingfinancials.htm |
EX-99.1 - ADDITIONAL EXHIBITS - HireQuest, Inc. | exh991snellingaudit.htm |
EX-23.1 - CONSENTS OF EXPERTS AND COUNSEL - HireQuest, Inc. | exh231consent.htm |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM 8-K
AMENDMENT NO.
1
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported): March 1,
2021
HIREQUEST,
INC.
(Exact
name of registrant as specified in its Charter)
|
|
|
|
|
Delaware
|
|
000-53088
|
|
91-2079472
|
(State
or Other Jurisdiction of
Incorporation
or Organization)
|
|
(Commission
File
Number)
|
|
(I.R.S.
Employer
Identification
No.)
|
111
Springhall Drive, Goose Creek, SC
|
|
29445
|
(Address
of Principal Executive Offices)
|
|
(Zip
Code)
|
(843)
723-7400
(Registrant’s
telephone number, including area code)
(Former
name, former address and former fiscal year, if changed since last
report)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation
of the registrant under any of the following provisions
(see General Instruction A.2.
below):
☐ Written communications pursuant to Rule 425 under
the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under
the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Securities
registered pursuant to Section 12(b) of the Act:
Title of Each
Class
|
Trading
Symbol(s)
|
Name of Each
Exchange on Which Registered
|
Common Stock,
$0.001 par value
|
HQI
|
The NASDAQ Stock
Market LLC
|
Indicate
by check mark whether the registrant is an emerging growth company
as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of
1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 13(a) of the
Exchange Act. ☐
Introductory
Note.
On March 1, 2021,
HQ Snelling Corporation (“HQ Snelling”), a wholly-owned
subsidiary of HireQuest, Inc. (the “Company”) completed
its acquisition of certain assets and assumption of certain
liabilities (the “Transaction”) of Snelling Staffing,
LLC, Snelling Services, LLC, Snelling Employment, LLC, Snelling
Medical Staffing, LLC, and Snelling Investments, Inc.
(collectively, the “Sellers”) in accordance with the
terms of the Asset Purchase Agreement (the “Purchase
Agreement”) dated January 29, 2021 by and among HQ Snelling,
the Sellers, Snelling Holdings, LLC as Sellers’
Representative, and the Company (solely in its capacity as
guarantor of the obligations of HQ Snelling). The assets acquired
included the working capital of Sellers, customer lists and
agreements, and other items set forth in the Purchase Agreement
which was filed as Exhibit 2.1 to the Company’s Form 8-K
filed with the Securities and Exchange Commission
(“SEC”) on February 1, 2021 as amended by the First
Amendment, filed as Exhibit 2.1 to the Company's Form 8-K filed
with the SEC on March 2, 2021, both of which are incorporated
herein by reference. The total consideration paid was $17.3 million
before working capital adjustments.
This Amendment No.
1 to Current Report on Form 8K/A (the "Form 8-K/A") amends and
supplements the Current Report on Form 8-K filed by the Company
with the Securities and Exchange Commission on March 2, 2021 (the
"Original Report") to include consolidated financial statements of
Sellers and the pro forma financial information required by Items
9.01(a) and 9.01(b), respectively, and to include the exhibits
under Item 9.01(d) of this Form 8-K/A.
Item 9.01 Financial Statements and
Exhibits.
(a)
Financial Statements of
Business Acquired
The audited
consolidated financial statements of Sellers as of and for the
years ended December 27, 2019 and December 28, 2018, and the
related notes thereto, are filed as Exhibit 99.1 to this Form 8K/A
and are incorporated in their entirety into this item by
reference.
The unaudited
consolidated balance sheets of Sellers at September 25, 2020 and
December 27, 2019, the unaudited consolidated statements of
operations of Sellers as of and for the quarters and three quarters
ended September 25, 2020, and September 27, 2019, and the unaudited
consolidated statement of cash flows for the nine months ended
September 25, 2020 and September 27, 2019, and the related notes
thereto, are filed as Exhibit 99.2 to this Form 8-K/A and are
incorporated in their entirety into this item by
reference.
(b)
Pro Forma Financial
Information
The unaudited pro
forma condensed combined financial statements, which include the
unaudited pro forma condensed combined balance sheet as of
September 30, 2020 and the unaudited pro forma condensed combined
statements of operations for the quarter ended September 30, 2020,
the three quarters ended September 30, 2020, and the year ended
December 31, 2019, and the related notes thereto, are filed as
Exhibit 99.3 to this Form 8-K/A and are incorporated in their
entirety into this item by reference.
The unaudited pro
forma condensed combined financial statements were derived from the
Company's and the Sellers' separate historical consolidated
financial statements. These pro forma financial statements may not
necessarily reflect what the Company's results of operations and
financial position would have been had the Transaction occurred
during the periods presented in the pro forma financial statements,
or what the Company's results of operations and financial position
will be in the future.
(c)
Not
Applicable
(d)
Exhibits
99.1 Audited consolidated financial statements
of Sellers as of and for the years ended December 27, 2019 and
December 28, 2018, and the related notes thereto.
99.2 Unaudited
consolidated balance sheets of Sellers at September 25, 2020 and
December 27, 2019, the unaudited consolidated statements of
operations of Sellers as of and for the quarters and three quarters
ended September 25, 2020, and September 27, 2019, and the unaudited
consolidated statement of cash flows for the nine months ended
September 25, 2020 and September 27, 2019, and the related notes
thereto.
99.3 Unaudited pro forma condensed combined
financial statements, which include the unaudited pro forma
condensed combined balance sheet as of September 30, 2020 and the
unaudited pro forma condensed combined statements of operations for
the quarter ended September 30, 2020, the three quarters ended
September 30, 2020, and the year ended December 31, 2019, and the
related notes thereto.
Cautionary Note Regarding Forward Looking
Statements.
This
Current Report on Form 8-K/A, the Original Report, and the exhibits
attached hereto and thereto and incorporated herein and therein
contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 including
statements regarding the acquisition of certain assets of Sellers
and the expected benefits from such transaction including increased
earnings and revenue and the effects of expanded scale. All
statements other than statements of historical facts contained
herein, including the statements identified in the preceding
sentence and other statements regarding our future financial
position and results of operations, liquidity, business strategy,
and plans and objectives of management for future operations, are
forward-looking statements. The words “expect,”
“expectation,” “intend,”
“anticipate,” “will,”
“believe,” “may,” “estimate,”
“continue,” “should,” “plan,”
“could,” “target,” “potential,”
“is likely,” and similar expressions as they relate to
the Company or Sellers are intended to identify forward-looking
statements. We have based these forward-looking statements largely
on management’s expectations and projections regarding future
events, negotiations, and financial trends that we believe may
affect our financial condition, operating performance, business
strategy, and financial needs. These forward-looking statements
involve a number of risks and uncertainties.
Important
factors that could cause actual results to differ materially from
these forward-looking statements include: the possibility that the
anticipated benefits of the asset acquisition will not be realized
or will not be realized within the expected time period; the risk
that Sellers' business may not be integrated successfully; the risk
that disruption from the acquisition may make it more difficult to
maintain existing business and operational relationships; and
several other factors.
Further
information on risks we face is detailed in our filings with the
Securities and Exchange Commission, including our Form 10-K for the
fiscal year ended December 31, 2019, our quarterly reports on Form
10-Q filed since that date, and our current reports on Form 8-K
filed with the SEC on February 1, 2021 and March 2, 2021, and will
be contained in our SEC filings in connection with this
acquisition. Any forward-looking statement made by us herein speaks
only as of the date on which it is made. Factors or events that
could cause our actual results to differ may emerge from time to
time, and it is not possible for us to predict all of them. The
Company undertakes no obligations to publicly update any
forward-looking statements, whether as a result of new information,
future developments or otherwise, except as may otherwise be
required by law.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf
by the undersigned, hereunto duly authorized.
|
|
|
|
|
|
|
HIREQUEST,
INC.
|
||
|
|
(Registrant)
|
||
|
|
|
||
|
|
|
|
|
|
|
|
||
Date: March 24,
2021
|
|
|
|
/s/ John McAnnar
|
|
|
|
|
John
McAnnar
|
|
|
|
|
Chief Legal
Officer
|