Filed pursuant to Rule 424(b)(3)
Registration No. 333-240280
3,563,369 Shares of Common Stock
This prospectus relates to the resale of up to 3,563,369 shares of common stock, without par value, of GEE Group Inc., an Illinois corporation (the “Company”), that may be sold from time to time by the selling stockholders named in this prospectus (the “Selling Stockholders”).
The shares of common stock offered under this prospectus consist of (i) an aggregate of 2,470,123 shares of common stock that are held by certain of the Selling Stockholders, including shares of common stock issued to such Selling Stockholders as payment of PIK interest with respect to the Company’s 9.5% Convertible Subordinated Notes, and (ii) an aggregate of 1,093,246 shares of common stock that were issued to certain of the Selling Stockholders as payment of PIK interest with respect to the Company’s Series C 8% Cumulative Convertible Preferred Stock and upon conversion of the Company’s Series C 8% Cumulative Convertible Preferred Stock..
We will not receive any proceeds from the sale of any of the shares of common stock by the Selling Stockholders.
Our common stock is traded on the NYSE American under the symbol “JOB.” On August 12, 2020, the closing price of our common stock on the NYSE American was $1.01.
Investing in our securities involves a high degree of risk. See “Risk Factors” on page 10 and the information referred to therein for a discussion of risks applicable to us and an investment in our common stock.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus is August 12, 2020
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS
This prospectus is part of a registration statement on Form S-3 that we filed with the Securities Exchange Commission, or the SEC, using a shelf registration process. Under the shelf registration process, the Selling Stockholders named in this prospectus may, from time to time, sell the securities described in this prospectus in one or more offerings. This prospectus and the documents incorporated by reference herein include important information about us, the shares of common stock being offered by the Selling Stockholders and other information you should know before investing. Any prospectus supplement may also add, update, or change information in this prospectus. If there is any inconsistency between the information contained in this prospectus and any prospectus supplement, you should rely on the information contained in that particular prospectus supplement.
This prospectus does not contain all the information provided in the registration statement we filed with the SEC. You should read this prospectus together with the additional information about us described in the sections below entitled “Where You Can Find Additional Information” and “Incorporation of Certain Information by Reference”. You should rely only on information contained in, or incorporated by reference into, this prospectus. We have not, and the Selling Stockholders have not authorized anyone to provide you with information different from that contained in, or incorporated by reference into, this prospectus. The information contained in this prospectus is accurate only as of the date on the front cover of the prospectus and information we have incorporated by reference in this prospectus is accurate only as of the date of the document incorporated by reference. You should not assume that the information contained in, or incorporated by reference into, this prospectus is accurate as of any other date.
This prospectus does not constitute an offer to sell or the solicitation of an offer to buy any securities other than the registered securities to which it relates, nor does this prospectus constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction.
For purposes of this prospectus, references to the terms “GEE Group,” the “Company,” “we,” “us” and “our” refer to GEE Group Inc. collectively with its subsidiaries, unless the context otherwise requires.
This prospectus and the information incorporated by reference herein and therein include trademarks, service marks and trade names owned by us or other companies. All trademarks, service marks and trade names included or incorporated by reference into this prospectus are the property of their respective owners.
WHERE YOU CAN FIND MORE INFORMATION
We file reports, proxy statements and other information with the SEC under the Exchange Act. You may read and copy this information from the Public Reference Room of the SEC, 100 F Street, N.E., Room 1580, Washington, D.C. 20549, at prescribed rates. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet website that contains reports, proxy statements and other information about issuers, like us, that file electronically with the SEC. The address of that website is www.sec.gov.
We also maintain a website at www.generalemployment.com through which you can access our filings with the SEC. The information contained in, or accessible through, our website is not a part of this prospectus.
PROSPECTUS SUMMARY
This summary highlights information contained elsewhere or incorporated by reference into this prospectus. This summary does not contain all of the information that you should consider before investing in our common stock. You should carefully read the entire prospectus, including the “Risk Factors” section in this prospectus and the information incorporated by reference herein that is referred to in such section,as well as the financial statements and the other information incorporated by reference herein before making an investment decision.
Overview
GEE Group Inc.is a provider of permanent and temporary professional, industrial and medical data entry, other healthcare administrative assistant staffing and placement services in and near several major U.S cities. We specialize in the placement of information technology, engineering, medical and accounting and office professionals for direct hire and contract staffing for our clients, and provide temporary staffing services for our commercial clients.
We have several subsidiary corporations all of which are wholly owned and consolidated under GEE Group Inc. Our material operating subsidiaries include Access Data Consulting Corporation, Agile Resources, Inc., BMCH, Inc., Paladin Consulting, Inc., Scribe Solutions, Inc., SNI Companies, Triad Logistics, Inc., and Triad Personnel Services, Inc. In addition, we and our operating subsidiaries own and operate under other trade names, including Ashley Ellis, Certes Financial Professionals, General Employment Enterprises and Omni One.
Services Provided
The Company and its subsidiaries provide the following services: (a) professional placement services specializing in the placement of information technology, engineering, medical data entry assistants (medical scribes) who specialize in electronic medical records (EMR) services for emergency departments, specialty physician practices and clinics and finance, accounting and office professionals for direct hire and contract staffing, and (b) temporary staffing services in light industrial staffing.
Together with its subsidiaries, the Company provides staffing services through a network of branch offices located in several major metropolitan areas throughout the United States. The Company’s industrial staffing business provides weekly temporary staffing for light industrial clients, primarily in Ohio.
The Company’s contract and placement services are principally provided under two operating divisions or segments: Professional Staffing Services and Industrial Staffing Services.
The Company’s operating subsidiaries and end markets served under each of its operating divisions are as follows:
Access Data Consulting provides higher-end IT consulting and IT contract staffing services including project management support to businesses regionally and throughout the U.S.
Agile Resources delivers unique CIO advisory services and IT project support resources in the areas of application architecture and delivery, enterprise operations, information lifecycle management and project management all with flexible delivery options
Ashley Ellis works with C-suite and senior executives to offer full cycle engineering and IT contract staffing services, with a focus on business intelligence, application development and network infrastructure, to clients throughout the U.S.
General Employment Enterprises is the oldest brand and primarily provides direct hire placements for Accounting and Engineering, with an emphasis on mechanical, manufacturing and equipment maintenance, clients throughout the Midwest
Omni One specializes in technical and professional direct-hire and contract staffing solutions, for manufacturing and engineering clients primarily spread-out through the Midwest
Paladin Consulting provides IT, Accounting and Human Resource contract staffing through Resource Process Outsourcing (RPO), Managed Service Provider (MSP) and Vendor Management (VMS) capabilities
Scribe Solutions provides Emergency Room and Physician Practices with highly trained medical scribes for personal assistant work in connection with electronic medical records (EMR)
SNI Companies provides recruitment and both direct hire and contract temporary staffing services, specializing in Administrative, Accounting, Finance, Banking, and IT, to fourteen major U.S. metropolitan markets
Triad Staffing provides light industrial contract labor for all phases of manufacturing and assembly, warehousing, packing and shipping, custodial and general labor operations throughout Ohio
Business Strategy
Our business strategy is multi-dimensional and encompasses both organic growth and growth through strategic acquisitions. The main tenants of our strategy are to:
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Provide innovative solutions for clients delivered through an enhanced menu of professional service offerings in our existing markets and comprised of multiple specialties, including IT, Administrative, Finance and Accounting, Engineering, and Healthcare;
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Enter fastest growing markets by leveraging strategic customer relationships and through geographic footprint expansion with a complete menu of service offerings;
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Create national wholesale division for IT and aggressively pursue MSP & VMS accounts; and
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Capitalize on commercial opportunities following recent shutdowns and displacements of blue collar, office clerical, service workers and other essential service employment opportunities, as the current economy returns to sustained growth following the Coronavirus Pandemic and with a particular focus on logistics and E-Commerce.
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Recent Developments
Completion of Financial Restructuring Transaction
On June 30, 2020, we completed and closed a financial restructuring of approximately $19.7 million of our subordinated indebtedness and approximately $27.7 million of its convertible preferred stock (the “Restructuring”) as agreed pursuant to the terms of that certain Seventh Amendment dated as of April 28, 2020 (the “Seventh Amendment”), to the Revolving Credit, Term Loan and Security Agreement, dated as of March 31, 2017, as amended,(the “Credit Agreement”) by and among the Company, Scribe Solutions, Inc., Agile Resources, Inc. Access Data Consulting Corporation, Triad Personnel Services, Inc. Triad Logistics, Inc., Paladin Consulting, Inc., BMCH, INC., GEE Group Portfolio Inc., and SNI Companies, each subsidiary of the Company listed as a “Guarantor” on the signature pages thereto each lender named therein and MGG Investment Group LP, as administrative agent, collateral agent and term loan agent for the lenders (“MGG”). In connection with the Restructuring, we entered into the following agreements with the holders of its subordinated indebtedness and convertible preferred stock.
We entered into a Repurchase Agreement for Preferred Stock and Subordinated Notes (the “Repurchase Agreement”), dated as of June 30, 2020 with Ronald R. Smith (“Mr. Smith”), Thrivent Financial for Lutherans, Madison Capital Funding LLC, Maurice R. Harrison IV, Peter Langlois, Vincent Lombardo and Shane Parr (collectively with Smith, Thrivent and Madison, the “SNI Group Members” pursuant to which the SNI Group Members agreed to allow the Company to repurchase and settle all of the 9.5% Convertible Subordinated Notes (the “9.5% Notes”), Series B Convertible Preferred Stock, no par value (“Series B Preferred Stock”), 8% Convertible Subordinated Notes (“8% Notes”) and Series C 8% Cumulative Convertible Preferred Stock, no par value (“Series C Preferred Stock”) held by each of them as set forth below. All of the outstanding 9.5% Notes and all of the outstanding Series B Preferred Stock were held by SNI Group Members.
Pursuant to the Repurchase Agreement, the holders of the 9.5% Notes agreed to accept an aggregate amount of $1,114,922.81 in cash in consideration for the purchase by the Company of the entire $12,500,000.00 aggregate principal amount of the 9.5% Notes held by them. This amount was paid to the SNI Group Members on June 30, 2020.
Pursuant to the Repurchase Agreement the holders of the Series B Preferred Stock agreed to accept an aggregate amount of $2,894,238.51 in cash in consideration for the purchase by the Company of all 5,565,843 outstanding shares of Series B Preferred Stock held by them. This amount was paid to the SNI Group Members on June 30, 2020.
Pursuant to the Repurchase Agreement, Mr. Smith agreed to accept an aggregate amount of $520,000 in cash in consideration for the purchase by the Company of the $1,000,000 aggregate principal amount of 8% Notes held by him. Pursuant to the Repurchase Agreement Mr. Smith also agreed to accept an aggregate amount equal to $37,346.40 in cash in consideration for the purchase by the Company of the 71,820 shares of Series C Preferred Stock held by him. These amounts were paid to Mr. Smith on June 30, 2020.
On June 30, 2020, the related party holders of the remaining $1,000,000 aggregate principal amount of the Company’s 8% Notes converted such 8% Notes to an aggregate of 1,000,000 shares of Series C Preferred Stock which were immediately and simultaneously converted into 1,000,000 shares of Common Stock at the $1.00 per share conversion price stated in the 8% Notes and in the Series C Preferred Stock. These holders also converted an aggregate of 93,246 additional shares of Series C Preferred Stock issued or issuable to them into a total of 93,246 shares of Common Stock at the $1.00 per share conversion price stated in the Series C Preferred Stock. The issuance of the 1,093,246 shares of Common Stock to these former holders of 8% Notes and Series C Preferred Stock was completed on June 30, 2020.
On June 30, 2020, the Company and Jax Legacy Investment 1, LLC (“Jax Legacy”), the sole holder of the Company’s 10% Convertible Subordinated Notes (the “10% Notes”) entered into a Note Conversion Agreement whereby Jax Legacy agreed to immediately convert the $4,185,000 aggregate principal amount of 10% Notes held by it into 717,839 shares of Common Stock at the $5.83 per share conversion rate stated in the 10% Notes. The conversion of the 10% Notes was consummated on June 30, 2020 and the Company issued 717,839 shares of Common Stock to Jax Legacy on that date.
On June 30, 2020, the Company and Enoch S. Timothy and Dorothy Timothy (collectively,” Timothy”) entered into a Note Settlement Agreement pursuant to Timothy agreed to accept an aggregate amount of $89,194 in cash in consideration for the purchase by the Company of the $1,000,000 aggregate principal amount of the Subordinated Promissory Note dated January 20, 2017. This amount was paid to Timothy on June 30, 2020.
In connection with the Repurchase Agreement, the Company and the SNI Group Members entered into a Registration Rights Agreement dated as of June 30, 2020 (the “Registration Rights Agreement”). Pursuant to the terms of the Registration Rights Agreement, the Company has agreed to file on or prior to July 31, 2020, an initial registration statement with respect to the resale of shares of Common Stock currently owned by the SNI Group members that are “Registrable Securities” (as defined in the Registration Rights Agreement) on or prior to July 31, 2020. In addition, the Company has agreed that it shall, on one occasion, on or after September 30, 2020 and upon the written request of the holders of 51% or more of the Registrable Securities, file a registration statement with respect to the Registrable Securities held by such holders. The demanding holders may require, in connection with the second registration, that the such demand registration take the form of an underwritten public offering of such Registrable Securities. The Registration Rights Agreement also provides that for a period of three years after the closing date of the Restructuring, the holders of Registrable Securities shall have piggyback registration rights with respect to all registration statements filed by the Company (other than those on Form S-4 or Form S-8).
Cares Act Payroll Protection Program Loans
On May 5, 2020 the Company and its subsidiaries entered into nine (9) unsecured promissory notes payable under CARES Act Payroll Protection Program (“PPP”) and received net funds totaling approximately $19,926,567 in order to obtain needed relief funds for allowable expenses under the CARES Act PPP.
Corporate Information
GEE Group Inc. was incorporated in the State of Illinois in 1962 and is the successor to employment offices doing business since 1893. Our principal executive offices are located at 7751 Belfort Parkway, Suite 150, Jacksonville, Florida 32256, and our telephone number at that location is (630) 954-0400. Our Internet website address is www.geegroup.com. The inclusion of our website address in this prospectus does not include or incorporate by reference into this prospectus any information on, or accessible through, our website.
THE OFFERING
This prospectus relates to the resale of up to 3,563,369 shares of common stock, without par value, of the Company, that may be sold from time to time by the Selling Stockholders named in this prospectus.
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Shares of Common Stock outstanding immediately prior
to the offering
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Approximately 17,667,123 shares
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Shares of Common Stock offered by the Selling Stockholders
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Up to 3,563,369 shares
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Use of Proceeds
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We will not receive any of the proceeds from the sale of the shares by the Selling Stockholders. See “Reasons for the Offer and Use of Proceeds” on page 10 of this prospectus.
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Transfer Agent and Registrar
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Continental Stock Transfer and Trust.
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Risk Factors
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Investment in our securities involves a high degree of risk. See Risk Factors” on page 10 of this prospectus and under similar sections in the documents we incorporate by reference into this prospectus for a discussion of factors you should consider carefully before making an investment decision.
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NYSE American Symbol
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“JOB”
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(1) The number of shares of common stock to be outstanding after this offering is based on 17,667,123 shares of common stock outstanding as of July 24, 2020, and excludes as of such date (i) 1,761,172 shares of common stock issuable upon the exercise of stock options outstanding at a weighted average exercise price of $3.38 per share, (ii)1,150,000 shares of restricted stock issuable upon vesting, and (iii) an aggregate of 305,270 additional shares of common stock reserved for issuance under our 2013 Amended and Restated Incentive Stock Plan.
RISK FACTORS
Investing in our securities involves risk. Before making an investment decision, you should carefully consider the risks described under “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K, “Item 1A. Risk Factors” in our most recent Quarterly Report on Form 10-Q, and any updates thereto in our Quarterly Reports on Form 10-Q, together with all of the other information appearing in or incorporated by reference into this prospectus, in light of your particular investment objectives and financial circumstances. Our business, financial condition or results of operations could be materially adversely affected by any of these risks. The trading price of our securities could decline due to any of these risks, and you may lose all or part of your investment. Two material risks facing our Company and many others at the present time are the Coronavirus Pandemic, and separately, the effects of recent civil unrest occurring in several major cities and metropolitan areas of our country, including some of which coincide with our branch locations.
REASONS FOR THE OFFER AND USE OF PROCEEDS
In connection with the Repurchase Agreement, the Company and the SNI Group Members entered into a Registration Rights Agreement dated June 30, 2020 (the “Registration Rights Agreement”) Pursuant to the terms of the Registration Rights Agreement, the Company agreed to file on or prior to July 31, 2020, an initial registration statement with respect to the resale of shares of Common Stock currently owned by the SNI Group members that are “Registrable Securities” (as defined in the Registration Rights Agreement) on or prior to July 31, 2020. The registration statement of which this prospectus forms a part is being filed by the Company to satisfy this obligation. Pursuant to the Registration Rights Agreement, the former holders of the Company’s Series C Convertible Preferred Stock and 8% Notes may include the shares of common stock issued upon conversion of such securities in the registration statement of which this prospectus forma a part.
The shares of common stock being offered by this prospectus are solely for the account of the Selling Stockholders. We will not receive any of the proceeds from the sale of these shares by the Selling Stockholders.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Some of the statements contained in this prospectus or incorporated by reference into this prospectus contain “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995. From time to time, we also provide forward-looking statements in other materials we release to the public, as well as oral forward-looking statements. Forward-looking statements include statements regarding our “expectations,” “hopes,” “beliefs,” “intentions,” or “strategies” regarding the future. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. We have tried, wherever possible, to identify such statements by using words such as, but not limited to, “anticipate,” “believe,” “expect,” “intend,” “estimate,” “predict,” “project,” “may,” “might,” “should,” “would,” “will,” “likely,” “will likely result,” “continue,” “could,” “future,” “plan,” “possible,” “potential,” “target,” “forecast,” “goal,” “observe,” “seek,” “strategy” and other words and terms of similar meaning, but the absence of these words does not mean that a statement is not forward looking. The forward-looking statements in this prospectus reflect our current views with respect to future events and financial performance.
Forward-looking statements are not historical factors and should not be read as a guarantee or assurance of future performance or results, and will not necessarily be accurate indications of whether such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made or management’s good faith beliefs, expectations and assumptions as of that time with respect to future events. Because forward-looking statements relate to the future, they are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include:
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our ability to retain the continued service of our key management personnel and to identify, hire and retain additional qualified professionals
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changes in demand from clients that we serve;
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our ability to achieve and sustain profitability in the future;
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general economic conditions, nationally and globally, and their effect on the demand and market for our services;
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fluctuations in our results of operations;
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our ability to raise additional capital in the future;
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the possibility that our contracts may be terminated by our clients;
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our ability to win new contracts and renew existing contracts;
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our ability to successfully execute our mergers and acquisitions strategy, including the integration of new companies into our business;
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our ability to successfully manage our growth strategy
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our ability to operate in highly competitive markets against more established companies;
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competitive pressures and trends in our industry and our ability to successfully compete with our competitors;
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changes in laws, regulations, or policies
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the risk of employee misconduct or our failure to comply with laws and regulations
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our ability to protect our management information systems and databases against system security failures, and cyber threats;
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the volatility of the trading price of our common stock;
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our ability to manage variability in revenues; and
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our ability to control, and operational issues pertaining to, business activities that we conduct with business partners and other third parties
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There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties, or assumptions, many of which are beyond our control, that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained or incorporated by reference in this prospectus supplement and the accompanying prospectus will in fact transpire or prove to be accurate. Readers are cautioned to consider the specific risk factors described or incorporated by reference herein and not to place undue reliance on the forward-looking statements contained or incorporated by reference herein, which speak only as of the date hereof.
We undertake no obligation to update or publicly revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required under applicable securities laws. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this paragraph. You are advised, however, to consider any further disclosures we make on related subjects in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and our other filings with the SEC. Also note that we provide a cautionary discussion of risks and uncertainties relevant to our business under “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K. We note these factors for investors as permitted by the Private Securities Litigation Reform Act of 1995. You should understand it is not possible to predict or identify all such factors.
SELLING STOCKHOLDERS
We are registering for resale an aggregate of 3,563,369 shares of our common stock (the “Shares”) by the Selling Stockholders. The Shares being offered by the Selling Stockholders are those that are currently held by certain of the Selling Stockholders, including shares of common stock that were issued to such Selling Stockholders as prior interest payments on our previously outstanding 9.5% Convertible Subordinated Notes and upon conversion of certain shares of our previously outstanding Series B Convertible Preferred Stock and Series C Convertible Preferred Stock. We are registering the Shares in accordance with the terms of the Registration Rights Agreement dated June 30, 2020 between our Company and the SNI Group Members in order to permit the Selling Stockholders and their pledgees, donees, transferees and other successors-in-interest that receive Shares from a Selling Stockholder as a gift, partnership distribution or other non-sale related transfer after the date of this prospectus to resell the Shares when and as they deem appropriate in the manner described in the “Plan of Distribution”.to offer the Shares for resale from time to time.
Certain of the Selling Stockholders are or have been officers and/or directors of the Company during the past three years as follows (i) Derek Dewan has been our Chief Executive Officer and a director of the Company since April 1, 2015, (ii) Kim Thorpe has been our Chief Financial Officer since June 15, 2018, (iii) Alexander Stuckey has been our Chief Administrative Officer since April 1, 2017, (iv) Peter Tanous has been a director of the Company since May 2015, (v) William Isaac has been a director of the Company since June 2015, (vi) Darla Moore has been a director of the Company since June 2018, (vii) Arthur B. Laffer served as a director of the Company from January 2015 until March 31, 2020, and (viii) Ronald R. Smith served as a director of the Company from August 16, 2017 until July 25, 2019. Other than as described in the preceding sentence, none of the Selling Stockholders has been an officer or director of us or any of our predecessors or affiliates within the last three years, nor has any Selling Stockholder had a material relationship with us within the last three years. None of the Selling Stockholders is a broker-dealer or an affiliate of a broker-dealer, who should be identified as an underwriter.
The table below lists the Selling Stockholders and other information regarding the beneficial ownership of the shares of common stock by the Selling Stockholders. The second column lists the number of shares of common stock beneficially owned by the Selling Stockholders as of July 30, 2020. The third column lists the shares of common stock being offered by this prospectus by the Selling Stockholders. Beneficial ownership is determined in accordance with the rules and regulations of the SEC. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, securities that are currently convertible or exercisable into our common stock, or convertible or exercisable within 60 days following the date of this prospectus, are deemed beneficially owned by such person.
Each Selling Stockholder may sell all, some or none of its shares in this offering. See “Plan of Distribution.”
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Name of Selling Stockholder
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Number of Shares of Common Stock Beneficially Owned Prior to Offering1
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Maximum Number of Shares of Common Stock to be Sold Pursuant to this Prospectus
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Number of Shares of Common Stock Beneficially Owned After Offering
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Percentage of Shares of Common Stock Beneficially Owned After Offering
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Thrivent Financial for Lutherans(1)
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1,738,255
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1,738,255
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0
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0.0
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%
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Madison Capital Funding LLC(2)
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463,356
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463,356
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0
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0.0
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%
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Maurice R. Harrison IV(3)
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107,023
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107,023
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0
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0.0
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%
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Peter John Langlois(4)
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35,985
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35,985
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0
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0.0
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%
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Vincent J. Lombardo(5)
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87,630
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87,630
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0
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0.0
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%
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Shane C. Parr(6)
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37,874
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37,874
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0
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0.0
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%
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Peter J. Tanous(7)
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338,987
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163,987
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175,000
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1.0
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%
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Alexander Preston Stuckey(8)
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1,875,624
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109,324
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1,766,300
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10.0
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%
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Arthur B. Laffer(9)
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242,559
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163,987
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78,572
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*
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Darla Moore(10)
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180,653
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163,987
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16,666
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*
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William Isaac(11)
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370,987
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163,987
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207,000
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1.2
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%
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FRUS Capital, LLC(12)
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129,324
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109,324
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20,000
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*
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Irrevocable Living Trust of Derek E. Dewan(13)
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885,716
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218,650
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667,066
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3.8
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%
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* Denotes less than one percent (1.0%).
(1) Each of Jen W.Wilson, Michael A. Groneberg, Bradley D. Fisher, Geoffrey A. Huber, Brett K. Stier and Matthew S. Fisk, share voting and investment power over shares held by Thrivent. Each of Jen W. Wilson, Michael A. Groneberg, Bradley D. Fisher, Geoffrey A. Huber, Brett K. Stier and Matthew S.Fisk disclaims beneficial ownership of the shares of common stock held by Thrivent.. The address for notice of Thrivent Financial for Lutherans is: 901 Marquette Avenue, Suite 2500, Minneapolis, MN 55402-3211.
(2) The address for notice of Madison Capital Funding LLC is: 227 West Monroe Street, Suite 5400, Chicago, IL 60606
(3) The address for notice of Mr. Harrison is: 8240 Treemont Pl., Frisco, TX 75034,
(4) The address for notice of Mr. Langlois is: 14761 Plumosa Drive, Jacksonville Beach, FL 32250
(5) The address for notice of Mr. Lombardo is: 2708 Mount Royal Circle, Mountain Brook, AL 35216
(6) The address for notice of Mr. Parr is: 24205 W. 67th Terrace,, Shawnee, KS 66226
(7) The address for notice of Mr. Tanous is: c/o/ GEE Group Inc., 7751 Belfort Parkway, Suite 150 Jackonville, FL32256
(8) The address for notice of Mr. Stuckey is: c/o GEE Group Inc., 7751 Belfort Parkway, Suite 150. Jacksonville, FL 32256
(9) The address for notice of Dr. Laffer is: c/o GEE Group Inc., 7751 Belfort Parkway, Suite 150. Jacksonville, FL 32256
(10) The address for Ms. Moore is: c/o GEE Group Inc., 7751 Belfort Parkway, Suite 150. Jacksonville, FL 32256
(11) The address for notice of Mr. Isaac is: c/o GEE Group Inc., 7751 Belfort Parkway, Suite 150. Jacksonville, FL 32256
(12) Kim and Susan Thorpe share voting and investment power over the shares held by FRUS Capital, LLC. The address for notice of FRUS Capital, LLC is c/o GEE Group Inc. 7751 Belfort Parkway, Suite 150. Jacksonville, FL 32256.
(13) Ms. Brittany M. Dewan is the trustee of the Derek E. Dewan Irrevocable Living Trust II Dated the 27th of July, 2010. Ms. Dewan has the sole voting power and sole dispositive power over the 885,716 shares of Common Stock held by the Derek E. Dewan Irrevocable living Trust. The address for notice of the Derek E. Dewan Irrevocable Living Trust II Dated the 27th of July 2010 is c/o GEE Group Inc. 7751 Belfort Parkway, Suite 150. Jacksonville, FL 32256
PLAN OF DISTRIBUTION
We are registering certain shares of common stock held by the Selling Stockholders named herein to permit the resale of these shares of common stock by the holder thereof from time to time after the date of this prospectus. We will not receive any of the proceeds from the sale by the Selling Stockholders of these shares of common stock. We will bear all fees and expenses incident to our obligation to register these shares of common stock.
The Selling Stockholders may sell all or a portion of the Shares beneficially owned by them and offered hereby from time to time directly or through one or more underwriters, broker-dealers or agents. If the Shares are sold through underwriters or broker-dealers, the Selling Stockholders will be responsible for underwriting discounts or commissions or agent’s commissions. The Shares may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may involve crosses or block transactions,
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on any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale;
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in the over-the-counter market;
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in transactions otherwise than on these exchanges or systems or in the over-the-counter market;
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through the writing of options, whether such options are listed on an options exchange or otherwise;
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in ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
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in block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;
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through purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
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through an exchange distribution in accordance with the rules of the applicable exchange;
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through privately negotiated transactions;
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through short sales;
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through sales pursuant to Rule 144;
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through block trades in which broker-dealers may agree with the Selling Stockholder to sell a specified number of such shares at a stipulated price per share;
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a combination of any such methods of sale; and
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any other method permitted pursuant to applicable law.
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If the Selling Stockholders effect such transactions by selling Shares to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the Selling Stockholder or commissions from purchasers of the Shares for whom they may act as agent or to whom they may sell as principal (which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those customary in the types of transactions involved). In connection with sales of the Shares or otherwise, the Selling Stockholders may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the Shares in the course of hedging in positions they assume. The Selling Stockholders may also sell Shares short and deliver Shares covered by this prospectus to close out short positions and to return borrowed shares in connection with such short sales. The Selling Stockholders may also loan or pledge Shares to broker-dealers that in turn may sell such shares.
The Selling Stockholders may pledge or grant a security interest in some or all of their Shares and, if a Selling Stockholder defaults in the performance of its secured obligations, the pledgees or secured parties may offer and sell the Shares from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act of 1933, as amended, amending, if necessary, the list of Selling Stockholders to include the pledgee, transferee or other successors in interest as Selling Stockholders under this prospectus. The Selling Stockholders also may transfer and donate the Shares in other circumstances in which case the transferees, donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.
The Selling Stockholders and any broker-dealer participating in the distribution of the Shares may be deemed to be “underwriters” within the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the Shares is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of Shares being offered and the terms of the offering, including the name or names of any broker-dealers or agents, any discounts, commissions and other terms constituting compensation from the Selling Stockholder and any discounts, commissions or concessions allowed or reallowed or paid to broker-dealers.
Under the securities laws of some states, the Shares may be sold in such states only through registered or licensed brokers or dealers. In addition, in some states the Shares may not be sold unless such shares have been registered or qualified for sale in such state or an exemption from registration or qualification is available and is complied with.
There can be no assurance that the Selling Stockholders will sell any or all of the Shares registered pursuant to the registration statement, of which this prospectus forms a part.
The Selling Stockholders and any other person participating in such distribution will be subject to applicable provisions of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, including, without limitation, Regulation M of the Exchange Act, which may limit the timing of purchases and sales of any of the Shares by the Selling Stockholders and any other participating person. Regulation M may also restrict the ability of any person engaged in the distribution of the Shares to engage in market-making activities with respect to the Shares. All of the foregoing may affect the marketability of the Shares and the ability of any person or entity to engage in market-making activities with respect to the Shares.
We will pay all expenses of the registration of the Shares pursuant to the Registration Rights Agreement, estimated to be $31,000 in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities or “blue sky” laws; provided, however, that the Selling Stockholders will pay all underwriting discounts and selling commissions, if any. We will indemnify the Selling Stockholders against liabilities, including some liabilities under the Securities Act, in accordance with the Registration Rights Agreement, or the Selling Stockholders will be entitled to contribution. We may be indemnified by the Selling Stockholders against civil liabilities, including liabilities under the Securities Act, that may arise from any written information furnished to us by the Selling Stockholders specifically for use in this prospectus, in accordance with the related registration rights agreement, or we may be entitled to contribution.
Once sold under the registration statement, of which this prospectus forms a part, the Shares will be freely tradable in the hands of persons other than our affiliates.
DESCRIPTION OF OUR COMMON STOCK
The following summary of the terms of our common stock does not purport to be complete and is subject to and qualified in its entirety by reference to our Amended and Restated Articles of Incorporation, as amended, and Amended and Restated Bylaws or bylaws, copies of which are on file with the SEC as exhibits to registration statements previously filed by us. See “Where You Can Find More Information.”
General
Our authorized capital stock consists of 200,000,000 shares of common stock, without par value, and 20,000,000 shares of preferred stock, without par value. As of July 24, 2020, we had 17,667,123 shares of common stock outstanding, and 1,761,172 shares of common stock, issuable upon the exercise of stock options outstanding at a weighted average exercise price of $3.38 per share, 1,150,000 shares of restricted stock units issuable upon vesting, and an aggregate of 305,270 additional shares of common stock reserved for issuance under our 2013 Amended and Restated Incentive Stock Plan. As of July 24, 2020, there were no shares of preferred stock outstanding.
The following summary of the rights of our common stock is not complete and is qualified in its entirety by reference to our Amended and Restated Articles of Incorporation, as amended and our Amended and Restated Bylaws, copies of which are filed as exhibits to the registration statement of which this prospectus is a part.
Voting Rights
Holders of our common stock are entitled to one vote for each share held of record on all matters to be voted on by the stockholders. Holders of our common stock are not entitled to cumulate their votes.
Dividends and Liquidation
Subject to limitations under applicable law and preferences that may apply to any outstanding shares of our preferred stock, holders of the common stock are entitled to receive dividends when, as and if declared by the Board out of funds legally available therefor. In the event of the Company’s liquidation, dissolution or winding up, the holders of common stock are entitled to share ratably in all assets remaining available for distribution to them after payment of liabilities and after provision has been made for any preferred stock having preference over the common stock. Holders of shares of common stock, as such, have no conversion, preemptive or other subscription rights, and there are no redemption provisions applicable to the common stock.
Rights and Preferences
The common stock has no preemptive, conversion or other rights to subscribe for additional securities. There are no redemption or sinking fund provisions applicable to our common stock. The rights, preferences and privileges of holders of common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock that we may designate and issue in the future.
Fully Paid and Nonassessable
All outstanding shares of our common stock are, and all shares of common stock to be outstanding upon completion of the offering will be, validly issued, fully paid and nonassessable.
Amended and Restated of Incorporation and Amended and Restated Bylaw Provisions
See “Certain Provisions of Illinois Law and of the Company’s Amended and Restated of Incorporation, as amended and Amended and Restated Bylaws” for a description of provisions of our Amended and Restated Articles of Incorporation, as amended and Amended and Restated Bylaws which may have the effect of delaying changes in our control or management.
Transfer Agent and Registrar
The transfer agent and registrar for our common stock is Continental Stock Transfer and Trust.
CERTAIN PROVISIONS OF ILLINOIS LAW AND OF OUR AMENDED AND RESTATED ARTICLES OF INCORPORATION, AS AMENDED AND AMENDED AND OUR AMENDED AND RESTATED BYLAWS
Illinois Takeover Statute
We are subject to Section 11.75 of the Illinois Business Corporation Act (the “IBCA”), an anti-takeover statute. In general, Section 11.75 of the IBCA prohibits a publicly held Illinois corporation from engaging in a “business combination” with an “interested shareholder” for a period of three years following the time the person became an interested shareholder, unless the business combination or the acquisition of shares that resulted in a shareholder becoming an interested shareholder is approved in a prescribed manner. Generally, a “business combination” includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested shareholder. Generally, an “interested shareholder” is a person who, together with affiliates and associates, owns (or within three years prior to the determination of interested shareholder status did own) 15% or more of a corporation’s voting stock. The existence of this provision would be expected to have an anti-takeover effect with respect to transactions not approved in advance by our board of directors, including discouraging attempts that might result in a premium over the market price for our stock.
The IBCA also permits the board of directors to consider the interests of constituencies of the corporation in addition to shareholders, including employees, suppliers, customers and the community, in response to unsolicited offers.
Amended and Restated Articles of Incorporation, as amended and Amended and Restated Bylaw Provisions
Provisions of our Amended and Restated Articles of Incorporation, as amended and bylaws may have the effect of making it more difficult for a third party to acquire, or discourage a third party from attempting to acquire, control of our company by means of a tender offer, a proxy contest or otherwise. These provisions may also make the removal of incumbent officers and directors more difficult. These provisions are intended to discourage certain types of coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of our company to first negotiate with us. These provisions could also limit the price that investors might be willing to pay in the future for shares of our common stock. These provisions may make it more difficult for stockholders to take specific corporate actions and could have the effect of delaying or preventing a change in our control. In particular, our Amended and Restated Articles of Incorporation, as amended and our Amended and Restated Bylaws provide for the following:
Special Meetings of Stockholders. Special meetings of our stockholders may be called only by the chairman of the board of directors, our president, a majority of the members of the board of directors, or by one or more stockholders holding shares in the aggregate entitled to cast not less than 20% of the votes at the special meeting.
Issuance of Undesignated Preferred Stock. Our board of directors is authorized to issue, without further action by the stockholders, up to 20,000,000 shares of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by the board of directors. We currently have (i) 1,000,000 shares designated as Series A Convertible Preferred Stock, (ii) 5,950,000 shares of preferred stock designated as Series B Convertible Preferred Stock and (iii) 3,000,000 shares of preferred stock designated as Series C 8% Cumulative Convertible Preferred Stock . As of the date of this prospectus, we did not have any shares of preferred stock outstanding. The existence of authorized but unissued shares of preferred stock enables our board of directors to render more difficult or to discourage an attempt to obtain control of us by means of a merger, tender offer, proxy contest or otherwise.
LEGAL MATTERS
Certain legal matters governed by New York law with respect to the validity of certain of the offered securities will be passed upon for us by Loeb & Loeb LLP, New York, New York. Certain legal matters governed by Illinois law with respect to the validity of certain of the offered securities will be passed upon for us by Loeb & Loeb LLP, Chicago, Illinois.
EXPERTS
The audited consolidated balance sheets as of September 30, 2019 and 2018, and the related consolidated statements of operations, shareholders’ equity, and cash flows for each of the years in the two-year period ended September 30, 2019 incorporated herein by reference from our Annual Reports on Form 10-K have been audited by Friedman LLP, an independent registered public accounting firm, as stated in its report, which is incorporated by reference and has been so incorporated in reliance upon the report of such firm given upon its authority as experts in accounting and auditing.
LIMITATION ON LIABILITY AND DISCLOSURE OF COMMISSION POSITION ON
INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
Our Amended and Restated Articles of Incorporation, as amended and Bylaws, as amended provide that we will indemnify our directors and officers, and may indemnify our employees and other agents, to the fullest extent permitted by the IBCA. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.
INFORMATION INCORPORATED BY REFERENCE
The SEC allows us to “incorporate by reference” the information we file with it which means that we can disclose important information to you by referring you to those documents instead of having to repeat the information in this prospectus. The information incorporated by reference is considered to be part of this prospectus, and later information that we file with the SEC will automatically update and supersede this information. We incorporate by reference the documents listed below and any future information filed (rather than furnished) with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act between the date of this prospectus and the termination of the offering and also between the date of the initial registration statement and prior to effectiveness of the registration statement, provided, however, that we are not incorporating any information furnished under any of Item 2.02 or Item 7.01 of any current report on Form 8-K
(1) Our Annual Report on Form 10-K for the fiscal year ended September 30, 2019, filed on December 26, 2019;
(2) Our Quarterly Report on Form 10-Q, filed on February 14, 2020;
(3) Our Quarterly Report on Form 10-Q filed on May 15, 2020;
(4) Our Current Report on Form 8-K filed on November 26, 2019;
(5) Our Current Report on Form 8-K, filed on December 26, 2019;*
(6) Our Current Report on Form 8-K, filed on February 14, 2020;*
(7) Our Current Report on Form 8-K filed on April 3, 2020;
(8) Our Current Report on Form 8-K filed on May 4, 2020;
(9) Our Current Report on Form 8-K filed on May 11, 2020;
(10) Our Current Report on Form 8-K filed on July 7, 2020;
(11) Our Current Report on Form 8-K filed on August 3, 2020;
(12) Our Definitive Schedule 14A Proxy Statement filed on August 12, 2020; and
(13) The description of our Common Stock set forth in our Registration Statement on Form 8-A filed with the Commission on February 21, 1990, including any amendments or reports filed for the purpose of updating such description.
*Portions of this report were furnished to the SEC under Item 2.02 (Results of Operations and Financial Conditions) and/or Item 7.01(Regulation FD Disclosure).
All documents subsequently filed by the Registrant with the Commission pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act (other than documents or portions of documents deemed to be furnished pursuant to the Exchange Act), prior to the filing of a post-effective amendment which indicates that all securities offered have been sold, or which deregisters all securities then remaining unsold, shall be deemed to be incorporated by reference herein and to be a part hereof from the date of filing of such documents.
Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this Registration Statement to the extent that a statement contained herein, or in any other subsequently filed document which also is incorporated or deemed to be incorporated by reference herein, modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Registration Statement.
These documents may also be accessed on our website at www.Iteris.com. Except as otherwise specifically incorporated by reference in this prospectus, information contained in, or accessible through, our website is not a part of this prospectus.
We will furnish without charge to you, upon written or oral request, a copy of any or all of the documents incorporated by reference into this prospectus or the registration statement of which it forms a part, including exhibits to these documents by writing or telephoning us at the following address:
GEE Group Inc.
7751 Belfort Parkway, Suite 150
Jacksonville, Florida 32256
Attention: Corporate Secretary
(630) 954-0400
3,563,369 Shares of Common Stock
PROSPECTUS
August 12, 2020
We have not authorized any dealer, salesperson or other person to give any information or represent anything not contained in or incorporated by reference into this prospectus. You must not rely on any unauthorized information. If anyone provides you with different or inconsistent information, you should not rely on it. This prospectus does not offer to sell any shares in any jurisdiction where it is unlawful. Neither the delivery of this prospectus, nor any sale made hereunder, shall create any implication that the information in this prospectus is correct after the date hereof.
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