Labor SMART, Inc.

August 12, 2015 07:00 ET

Labor SMART, Inc. to Complete Million Dollar Sale of Five Offices

Total Valuation of Deal Exceeds $1.8 Million

ATLANTA, GA--(Marketwired - Aug 12, 2015) - 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 will receive $1,025,000 in cash consideration for the sale of the operating assets of five branch offices. In addition, under the terms of the purchase agreement, Labor SMART, Inc. will retain the open accounts receivable at the sold branches, totaling $811,081.

"This is a significant development for Labor SMART. The branches subject to this transaction operate in the two states where we have locations that are not covered under our large deductible workers compensation program. With exposure to the state sponsored insurance pool, these branches operate at gross margins that are 600 or more basis points lower than other branches," stated Ryan Schadel, President and CEO of Labor SMART, Inc. "The strategic sale of these locations puts Labor SMART in a much stronger position, both financially and competitively in our remaining and future markets."

Labor SMART expects the transaction to be completed by close of business today and will provide an update on the Company's business strategy in the coming days.

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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