SUBSEQUENT EVENTS
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6 Months Ended | |
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Nov. 30, 2015
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Subsequent Events [Abstract] | ||
Subsequent Events [Text Block] | NOTE 15 - SUBSEQUENT EVENTS On December 3, 2015, the Company issued warrants to purchase 30,087 shares to a placement agent. On December 11, 2015, two (2) Series B Bond Holders owning an aggregate principal amount of $400,000 in Series B Bonds agreed to modify the terms of the Series B Bonds to provide that (i) the Company shall make payments on the principal amount of the Series B Bonds in six (6) equal tranches, every month, beginning on December 15, 2015, (ii) the Company shall pay all accrued interest on the Series B Bonds by November 6, 2015, as calculated through December 15, 2015, at an increased rate of 18% beginning September 30, 2015. The interest rate will revert back to 12% for all interest payments made after December 15, 2015. In addition, the conversion rate and the price of common stock issued as interest payments on the Series B Bonds decreased from $12.00 to $10.00 per share. On December 23, 2015, the Company repaid in full the outstanding balance of the $359,000 convertible promissory note that was issued on June 23, 2015. On December 30, 2015, Staffing 360 filed a Certificate of Designations, Preferences and Rights of Series B Preferred Stock with the Nevada Secretary of State, whereby the Company designated 200,000 shares as Series B Preferred Stock, par value $0.00001 per share. The Series B Preferred Stock shall have a stated value of $10.00 per share. Except as otherwise required by law, the Series B Preferred Stock have no voting rights. On December 30, 2015, the Company issued an aggregate of 100,000 shares of Series B Preferred Stock to a note holder in exchange for a warrant to purchase 392,000 shares as well as the rights to a warrant to purchase an additional 392,000 shares upon default. |