Labor Smart Inc (LTNC)

[sobe4life]

There is no basis for theories that cannot be substantiated....

DD2Gain

The CEO did not raise the AS to 1 billion because it was a nice round number and the negative net worth is a historically growing problem quarter to quarter. It will be at most 5x the CURRENT dilution requirements, which means 200,000,000 OS is coming like a manure freight train.

First, since when is an aggressive growth company with less than 3 years of operations having a negative net worth become a problem?

That's right.... When we are told so!

Possibly, we might want to STOP acting like this company is well established company trading on the NYSE? After all, we are talking about buying this stock for .07 cents not $7.00!!!

Second, let's PAY ATTENTION to what the CEO stated about the A/S increase:

Ryan Schadel

"Today, I am taking a proactive step of increasing our authorized shares to 1 billion. I want to be clear, there is no intent to issue this many shares and to the contrary, this move protects shareholders from massive dilution that would occur if we failed to reserve properly and caused a default on these debentures. Many will ask, "But why 1 billion?" In case there are parties who believed the company could be pushed into default of these debentures, 1 billion authorized is such a large and unneeded amount, I believe it insures a default for lack of reserve is now impossible. Once these debentures are removed from our balance sheet, the board of directors will move to reduce the authorized shares back to a more reasonable number."

I think the CEO is clear and concise with his explanation.

The fact is, I'm basing my investment decisions on the FACTS that this company currently has under 40 million shares O/S and a little over 20 million in the float.