SOURCE: Labor SMART, Inc.

Labor SMART, Inc.

August 20, 2015 07:00 ET

Labor SMART, Inc. Pivots Acquisition Strategy

ATLANTA, GA--(Marketwired - Aug 20, 2015) - Labor SMART, Inc. (OTCQB: LTNC) (the "Company"), a leader in providing on-demand blue collar staffing primarily in the southeastern United States, today provided an update on its acquisition strategy.

"On August 19, 2015, Labor SMART, Inc. delivered a non-binding letter of intent to acquire the operating assets of a regional staffing company with multiple branch locations across the southern US, providing skilled and unskilled employees to small and medium sized businesses," stated Ryan Schadel, President and CEO of Labor SMART, Inc. "Our initial due diligence suggests that this business will produce $12-13 million in revenue for 2015. The business does not have an On-Demand model and we would not seek to change it, rather we would seek to expand on it."

"After shedding low margin, high risk business and divesting assets with lower than ideal gross profit margins, we are able to once again focus on smart growth and scaling up our operations in a meaningful way. Labor SMART has a well-built centralized support structure that can be leveraged without a substantial increase in operating costs and we must take advantage of the resources we have. The ability to integrate and execute on acquisitions quickly are strengths we will lean on heavily for our next growth phase."

"We want to make sound acquisitions that provide good cash flow and use of resources. If an acquisition is accretive and the integration risks are minimal, it's a deal we want to look at. We are in mid to late stage conversations for two additional acquisitions that we intend to pursue should the LOI submitted yesterday reach expiration."

Labor SMART's non-binding offer will expire in five business days if not executed by the selling party. Additionally, Labor SMART disclosed it has secured a term sheet for the necessary financing to complete the acquisition. The proposed financing is not equity based.

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.

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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