FORM 4
[ ] Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).         
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES
                                                                                  
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Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public
Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
                      

1. Name and Address of Reporting Person *

WYNNEFIELD PARTNERS SMALL CAP VALUE LP
2. Issuer Name and Ticker or Trading Symbol

TEAMSTAFF INC [ TSTF ]
5. Relationship of Reporting Person(s) to Issuer (Check all applicable)

_____ Director                      __ X __ 10% Owner
_____ Officer (give title below)      _____ Other (specify below)
(Last)          (First)          (Middle)

450 SEVENTH AVENUE, SUITE 509
3. Date of Earliest Transaction (MM/DD/YYYY)

6/1/2011
(Street)

NEW YORK, NY 10123
(City)        (State)        (Zip)
4. If Amendment, Date Original Filed (MM/DD/YYYY)

 
6. Individual or Joint/Group Filing (Check Applicable Line)

___ Form filed by One Reporting Person
_ X _ Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Trans. Date 2A. Deemed Execution Date, if any 3. Trans. Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V Amount (A) or (D) Price

Table II - Derivative Securities Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivate Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Trans. Date 3A. Deemed Execution Date, if any 4. Trans. Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
6. Date Exercisable and Expiration Date 7. Title and Amount of Securities Underlying Derivative Security
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Warrants to purchase common stock   $1.00   6/1/2011     J      21538       6/1/2011   6/1/2016   Common Stock   21538     (1) 21538   D   (2)  
Warrants to purchase common stock   $1.00   6/1/2011     J      32308       6/1/2011   6/1/2016   Common Stock   32308     (1) 53846   I   See Footnote   (3)

Explanation of Responses:
( 1)  On June 1, 2011, Wynnefield Partners Small Cap Value, LP and Wynnefield Partners Small Cap Value, LP I (collectively, the "Purchasers") entered into a Debenture Purchase Agreement (the "Purchase Agreement") with the Issuer, pursuant to which the Purchasers made a standby commitment to purchase up to an aggregate principal amount of $350,000 of convertible debentures of the Issuer from time to time in accordance with the Purchase Agreement. As of the date hereof, no convertible debentures have been purchased under the Purchase Agreement. The warrants to purchase common stock reported in this statement were issued in consideration of the Purchasers entering into the Purchase Agreement.
( 2)  The Reporting Person directly beneficially owns 21,538 warrants to purchase common stock. Wynnefield Capital Management, LLC, as the sole general partner of Wynnefield Partners Small Cap Value, L.P., has an indirect beneficial ownership interest in the warrants that Wynnefield Partners Small Cap Value L.P. directly beneficially owns. Nelson Obus and Joshua Landes, as co-managing members of Wynnefield Capital Management, LLC, have an indirect beneficial ownership interest in the warrants that the Reporting Person directly beneficially owns.
( 3)  The Reporting Person has an indirect beneficial ownership interest in 32,308 warrants to purchase common stock, which are directly beneficially owned by Wynnefield Partners Small Cap Value, L.P. I , as members of a group under Section 13(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Wynnefield Partners Small Cap Value, L.P. I, which maintains offices at the same address as the Reporting Person, is filing this statement jointly with the Reporting Person. Wynnefield Capital Management, LLC, as the sole general partner of Wynnefield Partners Small Cap Value, L.P. I, has an indirect beneficial ownership interest in the warrants that Wynnefield Partners Small Cap Value L.P. I directly beneficially owns. Nelson Obus and Joshua Landes, as co-managing members of Wynnefield Capital Management, LLC, have an indirect beneficial ownership interest in the warrants that the Reporting Person directly beneficially owns.

Remarks:
Each of the Reporting Owners identified in this statement disclaims beneficial ownership of the securities described in this
statement, except to the extent of their individual respective pecuniary interest in such securities. The filing of this
statement shall not be deemed an admission that any of the Reporting Owners identified in this statement are, for purposes
of Section 16 of the Exchange Act or otherwise, the beneficial owner of any securities specified in this statement other
than those directly beneficially owned by them.

Reporting Owners
Reporting Owner Name / Address
Relationships
Director 10% Owner Officer Other
WYNNEFIELD PARTNERS SMALL CAP VALUE LP
450 SEVENTH AVENUE
SUITE 509
NEW YORK, NY 10123

X

WYNNEFIELD PARTNERS SMALL CAP VALUE LP I
450 SEVENTH AVENUE
SUITE 509
NEW YORK, NY 10123

X

WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND LTD
450 SEVENTH AVE
STE 509
NEW YORK, NY 10123

X

WYNNEFIELD CAPITAL MANAGEMENT LLC
450 SEVENTH AVE
STE 509
NEW YORK, NY 10123

X

WYNNEFIELD CAPITAL INC
450 SEVENTH AVENUE., SUITE 509
NEW YORK, NY 10123

X

CHANNEL PARTNERSHIP II L P
450 SEVENTH AVENUE SUITE 509
NEW YORK, NY 10123

X

Wynnefield Capital, Inc. Profit Sharing Plan
450 SEVENTH AVENUE
SUITE 509
NEW YORK, NY 10123

X

OBUS NELSON

 

X

LANDES JOSHUA
450 SEVENTH AVENUE., SUITE 509
NEW YORK, NY 10123

X


Signatures
WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND, LTD., By: Wynnefield Capital, Inc., /s/ Nelson Obus, President 7/8/2011
** Signature of Reporting Person Date

WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P., By: Wynnefield Capital Management, LLC, General Partner, /s/ Nelson Obus, Managing Member 7/8/2011
** Signature of Reporting Person Date

WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P. I, By: Wynnefield Capital Management, LLC, General Partner, /s/ Nelson Obus, Managing Member 7/8/2011
** Signature of Reporting Person Date

WYNNEFIELD CAPITAL MANAGEMENT, LLC, /s/ Nelson Obus, Managing Member 7/8/2011
** Signature of Reporting Person Date

WYNNEFIELD CAPITAL, INC., /s/ Nelson Obus, President 7/8/2011
** Signature of Reporting Person Date

Channel Partnership II, L.P., /s/ Nelson Obus, General Partner 7/8/2011
** Signature of Reporting Person Date

WYNNEFIELD CAPITAL, INC. PROFIT SHARING PLAN, /s/ Nelson Obus, General Partner 7/8/2011
** Signature of Reporting Person Date

/s/ Nelson Obus 7/8/2011
** Signature of Reporting Person Date

/s/ Joshua Landes 7/8/2011
** Signature of Reporting Person Date


Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.
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