Labor SMART, Inc.

February 16, 2016 07:30 ET

Labor SMART, Inc. Receives LOI

Company to Review Offer as Alternative to Recently Announced Deal With The Staffing Group, Ltd.

ATLANTA, GA--(Marketwired - Feb 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.

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