Labor SMART, Inc. Receives LOI
Company to Review Offer as Alternative to Recently Announced
Deal with The Staffing Group, Ltd.
Atlanta, GA, United States, via NUZINET CORP. -
February 16, 2016 - Labor SMART, Inc. (OTCQB:
LTNC) (the "Company"), a leader in providing on-demand blue
collar staffing primarily in the southeastern United States, today
announced that after disclosing to the investing public its plan to
sell six branch locations to The Staffing Group, Ltd. (TSGL) in an
arms-length transaction, the Company received several inquiries
from parties expressing interest in acquiring some of its operating
assets.
On February 15, 2016 the Company received a formal non-binding
Letter of Intent from an unrelated 3rd party, seeking to acquire
the operating assets of eight branch locations. The proposed
transaction includes cash consideration of $2.5 million and Labor
SMART, Inc. would retain its open accounts receivable from the
operating locations.
Ryan Schadel, Chairman and Chief Executive Officer of Labor
SMART, Inc. stated, "Over the three day weekend, I received four
separate inquiries from parties interested in acquiring some or all
of our operations. It goes without saying that we have little
interest in a complete liquidation without an above market offer.
However, the formal LOI we received is somewhat competitive to the
transaction we laid out to shareholders on February 12, 2016, and
as such will be reviewed carefully. We will respond promptly and
appropriately, keeping the best interest of our long term
shareholders in mind."
About Labor SMART, Inc.
Labor SMART, Inc. provides On-Demand temporary labor to a
variety of industries. The Company's clients range from small
businesses to Fortune 100 companies. Labor SMART was founded to
provide reliable, dependable and flexible resources for on-demand
personnel to small and large businesses in areas that include
construction, manufacturing, hospitality, event-staffing,
restoration, warehousing, retailing, disaster relief and cleanup,
demolition and landscaping. Labor SMART believes it can make a
positive contribution each and every day for the benefit of its
clients and temporary employees. The Company's mission is to be the
provider of choice to its growing portfolio of customers with a
service-focused approach that enables Labor SMART to be seen as a
resource and partner to its clients.
Follow us on Twitter: @laborsmart
Investor Relations: @laborSMART_LTNC
CEO - Ryan Schadel: @CRyanSchadel
Safe Harbor Statement
This release contains statements that constitute forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These statements appear in a number of places
in this release and include all statements that are not statements
of historical fact regarding the intent, belief or current
expectations of Labor SMART, Inc., its directors or its officers
with respect to, among other things: (i) financing plans; (ii)
trends affecting its financial condition or results of operations;
(iii) growth strategy and operating strategy. The words "may",
"would", "will", "expect", "estimate", "can", "believe",
"potential", and similar expressions and variations thereof are
intended to identify forward-looking statements. Investors are
cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties, many of which are beyond Labor SMART, Inc.'s ability
to control, and that actual results may differ materially from
those projected in the forward-looking statements as a result of
various factors. More information about the potential factors that
could affect the business and financial results is and will be
included in Labor SMART, Inc.'s filings with the U.S. Securities
and Exchange Commission.
Contact:
Labor SMART, Inc.
shareholderrelations@laborsmart.com
