Following the news of full forgiveness of PPP loans, GEE Group Inc. (JOB) stock gained a huge 10.35% after hours. On December 20, the company announced full forgiveness of its $19.9 million PPP loans.
During the regular session, JOB stock fluctuated between $0.45 and $0.47 at 1.57 million shares. The stock closed the session with a loss of $1.56% at its closing price of $0.47. After the news emerged, the stock rallied in the after-hours to reach $0.51 at 870.92K shares.
Currently, the staffing solutions provider, GEE Group Inc. has a market capitalization of $53.97 million. Moreover, the company has 114.1 million shares outstanding in the market.
JOB’s Loan Forgiveness
The company had applied for the forgiveness of $19.9 million of Small Business Administration (SBA) Paycheck Protection Program (PPP) loans along with its subsidiaries. This was done through BBVA USA (currently PNC Bank, National Association, PNC) in fiscal 2022. Hence, all the PPP loans with accrued interest were forgiven in accordance with the Coronavirus Aid, Relief, and Economics Security Act (CARES Act).
Previously, a PPP loan of $3.4 million approx. was forgiven for JOB and its subsidiaries in fiscal 2021. Moreover, the accrued interest of approx. $34,000 was also forgiven along with the loan. Furthermore, the PNC notified JOB of the forgiveness of the remaining PPP loans on December 14. The remaining PPP loans were $16.5 million approx. plus accrued interest of $268,000 approx.
Hence, the company expects to declare zero outstanding debt in the upcoming financial results.
Insight into upcoming Financial Results
In the loan forgiveness announcement, the Chairman and CEO of GEE Group, Derek E. Dewan shared insight into the upcoming financials. The company expects to declare its Q4 and full fiscal year financial results this week. According to Mr. Dewan, JOB has $10 million approx. in cash, and no outstanding debt. Moreover, the company also has $15 million approx. under its ABL bank’s credit facility.
Recent Developments
Recently, the company participated in two investor conferences. Firstly, JOB’s Chairman and CEO, Mr. Dewan discussed the company’s operations, outlook, and growth strategy in the Q4 Virtual Investor Summit. Moreover, the Summit was held on November 16-17, 2021.
Secondly, the company also presented at the LD Micro Main Event investor conference IN Los Angeles, California. The conference was held from October 12 to 14, 2021. Furthermore, Kim Thrope (CFO) and Alex Stuckey (CAO) were the ones to present at the conference.
