Labor Smart Inc (LTNC)

[Voxofexp]

Notes can still convert at QUAD 6 (lowest trading price of the last 20 days *.6 or.55 or whatever the individual note says.) so there's at least another week or so of that.

If he's reached some sort of equity position agreement with the note holders to stop the uncertainty of dilution potential or something to that effect, which is what I suspect his big news is, he HAD to buy up enough shares to retain majority interest (not controlling, but majority). I do think the SEC will look into his diverting company funds to himself for that purpose as it was clearly a violation of his fiduciary responsibility to the COMPANY and SHAREHOLDERS first. But as we know,that's not this CEO's priority.

How they go forward is anyone's guess. Obviously they can't borrow working capital at any realistic terms (59%?? - no) and note holders who retain any equity position will have seats on a board to keep him in check. The open letter mentioned crowdfunding, but that's kinda what having a public company is already ain't it? That's laughable. There's no way to uplist without a massive R/S as you've said, and the only other option is to take the company private.

Bottom line is the company is just way too upside down to be able to dig its way out at the kind of margins in this business. That App ain't gonna be a game changer, people do business with people. He's already a cheap-ass when it comes to operational expenses, so there's no fluff to cut from the middle. Somebody's rearranging deck chairs on the Titanic.