Labor SMART, Inc.

February 22, 2016 07:00 ET

Labor SMART, Inc. Nets $677k in Transaction

Company Continues to Evaluate Offers as It Prepares for Transaction With The Staffing Group, Ltd.

ATLANTA, GA--(Marketwired - Feb 22, 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 it has sold one branch location to an unrelated 3rd party. The deal, valued at a total of $677,650 was closed on February 19, 2016. The Company received $336,000 cash and retained open accounts receivable of $341,605 in the transaction.

Ryan Schadel, President and CEO of Labor SMART, Inc., commented, "We received an official Letter of Intent last Thursday afternoon for this branch and proceeded, as the end result was consistent with our short term goals of cleaning up our capitalization structure and positioning the Company for future growth without the heavy weight of toxic debt. Having the ability to monetize assets is just one of the many tools we have to reach our short term goals."

The Company confirmed the transaction announced today does not affect the proposed arms-length transaction with The Staffing Group, Ltd. (TSGL) for the acquisition of six laborSMART™ branches.

In a February 12, 2016 press release, the Company announced a plan to explore the sale of six branch locations to The Staffing Group, Ltd. in an arms-length transaction.

The Company confirmed it continues to field offers and will provide additional information on any transactions that may occur.

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.

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