Total Valuation of Deal Exceeds $1.8 Million
Atlanta, GA, -- August 12, 2015 -- InvestorsHub NewsWire --
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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Contact Information
Contact:
Labor SMART, Inc.
shareholderrelations@laborsmart.com