Labor Smart Inc (LTNC)

[sobe4life]

Not necessarily true.

This company spent a considerable amount of time trying to go out and find better sources of financing to fuel their growth.

Because they are an OTC company with a limited operating history they were given two choices:

1. Give up a majority owned position to an Angel investor based on a valuation of current market capitalization

2. Raise capital through convertible notes

I think what's important here is to look at what the company did with the infusion of working capital and how it relates to te actual growth of the company and its balance sheet.

Many times we see companies raise capital through convertible debentures just to keep their doors open. And, most certainly, that is a recipe for disaster.

That is not the case with this company.