Home > Boards > US OTC > Miscellaneous >

Labor Smart, Inc (LTNC)

Add LTNC Price Alert      Hide Sticky   Hide Intro
Moderator: cpw13154, raangel, moneybagsclay, BigAl4, FREEBANDZ, megagnome
Search This Board:
Last Post: 2/7/2016 2:50:21 AM - Followers: 374 - Board type: Free - Posts Today: 7

Labor Smart, Inc


Company Overview:

Labor SMART, Inc. provides On-Demand temporary labor to a variety of industries. Their clients range from small businesses to fortune 100 companies. Labor SMART was founded to provide a reliable, dependable, and flexible resources for on-demand personnel to small and large businesses.
Every day they provide manpower for jobs in construction, manufacturing, hospitality, events, restoration, warehousing, retail, disaster relief and more. As one of the fastest growing temporary labor providers, their goal is to become a
nationwide resource and partner for their clients. Labor SMART takes pride in the belief that they can make a positive impact each and every day for the benefit of both their clients and temporary employees.


CEO Currently Owns: 2.185billion Shares

Labor SMART Issues Open Letter to The Staffing Group CEO

Company Seeks to Form Strategic Alliance

ATLANTA, GA -- (Marketwired) -- 12/01/15 -- Labor SMART, Inc. (OTCQB: LTNC) (the "Company"), a leader in providing on-demand blue collar staffing primarily in the southeastern United States, today delivered via email the following open letter to the President and Chief Executive Officer of The Staffing Group, Ltd. (TSGL).

December 1, 2015
400 Poydras St., Suite 1165 
New Orleans La 70130
Delivered Via Email

RE: 13D Filing by Labor Smart, Inc.

Mr. McLoone,

As you are now aware, our purchase of 2,000,000 shares of The Staffing Group Ltd. common stock on November 30, 2015 was followed by a Schedule 13D filing with the SEC, due to our previously unannounced acquisition of 1,758, 618 shares of common stock in the open market and the nature of our intentions. The purpose of this letter to you today is to clearly state what those intentions are and seek common ground for a mutually beneficial discussion.

Having launched Labor SMART, Inc. as a publicly traded startup, I am sensitive to the challenges of building a sustainable business from scratch with the added fun of engaging the public markets and all that entails. I am quite familiar with the history of your company and we've had some discussions over the last two years regarding potential opportunities, business combinations, etc. I'm also aware of the burdens you were handed almost immediately upon becoming CEO of a public company. Given those challenges, I commend you for the successes you've been able to claim along the way. 

At this time, we have three separate, but related proposals that we would like to discuss with you in a formal setting.

Leveraging Synergies

In your Form 10-Q for the quarter ended June 30, 2015, you discuss improved gross margins after shedding some high volume business. This is a tough and gutsy decision to make for the long term health of the company, and again, I commend you for taking this action. Still, with gross profit margins under 19%, a lot of profitability is left on the table. As you may know, Labor SMART attained a large deductible workers compensation policy in 2014 that drastically reduced our cost of sales. A business combination with Labor SMART could unlock value and profits hidden behind the high cost of workers compensation you are incurring. I propose that we work together to prepare a detailed analysis of the potential gains that could be had with Labor SMART's strong workers compensation program as the backbone of a reduction in cost of sales. This analysis should start with an examination of your loss runs for the last three years. There may also be a number of synergies that could be obtained leveraging Labor SMART's corporate support structure and your company's footprint. Additionally, there are undoubtedly vertical sales opportunities given the combined size of our respective customer bases. 

Leveraging Experience

Having worked with you at WTS before it was sold to MDT (and subsequently TrueBlue), I know that you are a solid operator with a conservative approach to risk. It is my belief that our combined teams and their experience would offer much to our collective customers, shareholders, and employees. The first component of this proposal is that we work together to create a joint venture, or similar structure, to license the Labor SMART brand, processes, and methods in addition to a management service agreement whereby Labor SMART will provide the necessary infrastructure to facilitate an aggressive growth plan and The Staffing Group provides the day to day management. 

Any growth plan will require capital. I've encountered a number of challenges to raising capital as a publicly traded company. Raising startup capital itself is expensive and as our share structure indicates, extremely dilutive without a substantial amount of financial engineering from the beginning. I've raised a small amount of money for Labor SMART and we successfully grew our business to over $20 million in less than three years. I'm grateful that we were able to get funding to build the company, but I would do it differently knowing what I know now. I've expended the better part of 2015 playing defensive and trying to protect LaborSMART's shareholders from massive dilution. Fortunately, we have been able to renegotiate the mechanics of our convertible debt and believe we can repair the share structure now that we have better control of conversion rights, but the time lost can never be recovered. And that leads me to the second part of this specific proposal.

Should we reach mutually beneficial terms to have Labor SMART license its systems to The Staffing Group, I propose that we take a "fund from the ground up" approach. Crowd funding legislation is due to go in to affect next year. I believe there is an opportunity to crowd fund the startup capital for each new individual branch that's opened. Labor SMART will agree to be the lead investor with a minority ownership percentage of each branch opened under the licensing agreement, but with an option to acquire the branch at its discretion in the future for a predetermined multiple of earnings. This structure would insulate your shareholders from massive dilution and still allow for continued growth of the Labor SMART brand. For The Staffing Group, this structure offers a runway to ramp up sales and branch network in a meaningful way and an equity event as licensed branches are acquired by Labor SMART. 

Expand the Board

Lastly, we propose that The Staffing Group increase its Board of Directors from two directors to a total of five directors, two of whom will be appointed by Labor SMART, Inc. and a third by mutual agreement of Labor SMART and The Staffing Group. I do not expect that this request would be obliged without some consideration. We are open to exploring a number of different options to get this request effectuated in a swift manner. I believe you would agree that one of the most important tasks you currently face is getting your Form 10-Q filed for the period ended September 30, 2015. We do not wish to upend that process with added procedural burdens. To be clear, Labor SMART will take steps to protect its investment if necessary, but we do not have the intent of becoming a hostile suitor. Our industry is built on relationships and Labor SMART believes in creating partnerships and opportunity, not enemies. 

In summary, both companies can benefit greatly by engaging in a mutual partnership, even if the structure is somewhat different from the ones we have proposed. I believe it is in the best interest of The Staffing Group's shareholders, with Labor SMART, Inc. as one of the largest holders, to explore any and every opportunity that may be present to build value and sustainable profitability for the benefit of all. As two sizeable regional players in our industry, we must act boldly to create opportunities for the future. 

I look forward to scheduling a meeting with at your earliest convenience,


C. Ryan Schadel
President & CEO - Labor SMART, Inc.

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.

Contact: Labor SMART, Inc.

Source: Labor SMART, Inc. 


44 Darby's Crossing Drive
Suite 116
Hiram, GA 30141
Phone: 770-222-5888
Fax: 770-222-5550

Founded 5/31/2011





  • 1D
  • 1M
  • 2M
  • 3M
  • 6M
  • 1Y
  • 2Y
  • 3Y
  • 5Y
Current Price
Bid Ask Day's Range
LTNC News: Information Statement - All Other (definitive) (def 14c) 02/02/2016 11:41:08 AM
LTNC News: Current Report Filing (8-k) 01/27/2016 02:17:52 PM
LTNC News: Labor SMART, Inc. Board Authorizes Share Buyback 01/26/2016 09:45:00 AM
LTNC News: Growth Expert Eddie Schmidt Joins Labor SMART, Inc. 01/20/2016 10:54:45 AM
LTNC News: Labor SMART, Inc. CEO Cancels Shares 01/15/2016 08:26:00 AM
#46364  Sticky Note $TSGL $LTNC HOSTILE TAKEOVER COMPLETE FREEBANDZ 02/04/16 11:41:43 AM
#46287  Sticky Note Recent developments...hmmm DD2Gain 02/04/16 08:12:55 AM
#45415  Sticky Note LTNC Due Diligence: Target: Nasdaq. 2million Buy Back/SS FREEBANDZ 01/29/16 12:18:21 PM
#38315  Sticky Note MONDAY MORNING PRESS RELEASE!!!!BIGTIME PEOPLE-HUGE!!!$$$$ OceansBuddy 12/28/15 08:18:06 AM
#34434  Sticky Note RED FLAGS AND FBI/SEC INVESTIGATIONS: DD2Gain 12/09/15 12:16:48 PM
#33982  Sticky Note $630,000.00 worth of LTNC Insider BUYS LQQK! familyof5 12/08/15 03:27:17 PM
#46703   Funny how all the negative posts vanish once Prime-Time 02/07/16 02:50:21 AM
#46702   Ha, check short interest via finra, it's at Nacho15 02/07/16 02:14:16 AM
#46701   I have zero vested here either way anymore. Nacho15 02/07/16 02:12:11 AM
#46700   I agree with you. I think maybe the ScottAllen 02/07/16 02:02:50 AM
#46699   Please intelligently explain why do you continue to Skyzmista 02/07/16 01:45:55 AM
#46698   He bought millions of shares with form 4s, roadrunner109 02/07/16 12:38:07 AM
#46697   I won't jump in on this one again Nacho15 02/07/16 12:16:55 AM
#46696   He wants to buy them at .0001 lol moneybagsclay 02/06/16 11:30:45 PM
#46695   Lol. They should try to be a little TRLRPRK-TRADER 02/06/16 10:44:21 PM
#46694   It always has been. Only consolation is we Eng62 02/06/16 10:35:03 PM
#46693   I gave up on it... No wonder this Walleye24 02/06/16 10:25:05 PM
#46692   The level of posts being removed is ridiculous. GATrader1 02/06/16 10:01:27 PM
#46687   That's still going to be a "cheap buy" Prime-Time 02/06/16 08:34:30 PM
#46686   He can buy my shares at .0030 roadrunner109 02/06/16 08:00:52 PM
#46684   Lol...'all these years'?...Times have changed obviously. eur06 02/06/16 07:42:41 PM
#46683   Lol nice TRLRPRK-TRADER 02/06/16 07:27:53 PM
#46682   Wooing investors....... You are always on both sides Eng62 02/06/16 07:27:03 PM
#46681   Welll, The game now is starting to resemble The tantalos60 02/06/16 07:24:44 PM
#46680   It would b on funniest videos. I'll start Eng62 02/06/16 07:24:06 PM
#46679   The haters just doing their jobs. it's all TRLRPRK-TRADER 02/06/16 07:21:36 PM
#46678   He'll miss a couple from time to time...that's whizent1 02/06/16 07:12:48 PM
#46677   No profit nor positive business fundamentals historically .... Nacho15 02/06/16 06:48:41 PM
#46676   Ryan The Lion has big plans here. biglued1 02/06/16 06:40:09 PM
#46675   YUP ;-) POS LTNC BIIDING .0001 NO BID 02/06/16 06:36:05 PM
#46673   Seems like an endless cycle 7s bought up moneybagsclay 02/06/16 06:32:22 PM
#46672   Wait you will not buy a Otc penny BigAl4 02/06/16 06:30:07 PM
#46671   Well, public companies have to start somewhere right? biglued1 02/06/16 06:24:53 PM
#46670   No Bid u r new on board as Eng62 02/06/16 06:21:47 PM
#46669   Seriously? You don't know what you missed? You GreenHarvest 02/06/16 05:51:01 PM
#46668   Let's not forget, prior to any talk about Prime-Time 02/06/16 05:38:51 PM
#46667   U missed the car he bought and the Eng62 02/06/16 05:28:58 PM
#46666   Mounting debt? You've gotta be kidding. biglued1 02/06/16 05:07:44 PM
#46665   ITS A POFS BECAUSE ITS OTC ... GRANTED NO BID 02/06/16 05:06:31 PM
#46664   These stocks wouldn't move without the kool-aid TRLRPRK-TRADER 02/06/16 05:04:59 PM
#46663   So just curious why you think this is biglued1 02/06/16 05:04:40 PM
#46662   TRADERS DONT CARE ABOUT THE KOOL AID ~~>> NO BID 02/06/16 05:02:34 PM
#46661   My bid is in not far above that. TRLRPRK-TRADER 02/06/16 05:00:18 PM
#46660   I WILL ~~>> WHEN MY BID FILLS @ NO BID 02/06/16 04:57:15 PM
#46659   It's much more than that. Watch the presentation TRLRPRK-TRADER 02/06/16 04:56:02 PM
#46658   Thank you. Coupled with a good business model TRLRPRK-TRADER 02/06/16 04:53:27 PM
#46657   Your "analysis" of this penny stock is a Skyzmista 02/06/16 04:53:24 PM
#46656   ROFLMAO ~~>> LABOR READY SENDS JOB TEXTS ... NO BID 02/06/16 04:51:27 PM
#46655   BIDDING .0001 NO BID 02/06/16 04:48:28 PM
#46654   Awesome analogy. We have brick and Tmyz 02/06/16 04:47:54 PM
#46653   There was a massive bid of 60 million roadrunner109 02/06/16 04:09:06 PM
#46652   All this flipping got ridiculous I got out moneybagsclay 02/06/16 03:58:35 PM
#46651   Nice find, surprised Ryan hasn't retweeted that.... $LTNC Prime-Time 02/06/16 03:34:56 PM
#46650   Recent Octane Group Tweets on $LTNC whizent1 02/06/16 03:00:30 PM
#46649   One tick reversal ? moneybagsclay 02/06/16 01:08:44 PM
#46646   There is nothing like the voice of experience...and reason! Colonel_mustard 02/06/16 09:58:39 AM