Labor Smart Inc (LTNC)

[BigAl4]

Quick look at the recent HUGE events that have occurred

April 6th 2016 8-k

https://biz.yahoo.com/e/160406/ltnc8-k.html

Entry into a Material Definitive Agreement, Completion of Acquisition or Dispos


Item 1.01 Entry into a Material Definitive Agreement.
On April 1, 2016, Labor Smart, Inc. (the "Company") entered in an Agreement for Purchase and Sale of Assets (the "Agreement") with The Staffing Group Ltd. (the "Buyer"). Pursuant to the Agreement, the Buyer will purchase from the Company the operating assets of four (4) branch locations, which shall only include customer lists, title to certain leases for real or personal property, contracts, fixed assets, and business records (collectively the "Purchased Assets"). The Company shall retain all open accounts receivable of the Purchased Assets of approximately $571,142.00. In consideration for the Purchased Assets, Buyer shall pay to the Company a purchase price equal to $2,915,000.00, paid as follows: (i) $890,890.00 in cash, (ii) 600,000 shares of Buyer's common stock at a cost basis of $1.80 per share, (iii) a promissory note executed by Buyer in favor of the Company in the amount of $755,000.00, (iv) payoff of certain of the Company's outstanding debt totaling $29,110.00, and (v) direct payment to IRS on behalf of the Company in the amount of $160,000.00 (the "Purchase Price").



Item 2.01 Completion of Acquisition or Disposition of Assets.
On April 1, 2016, the Company closed the Agreement described in Item 1.01 above and on April 5, 2016, the Purchase Price was released from escrow.





Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.

Exhibit Number Description
10.1 Agreement for Purchase and Sale of Assets

Now most recent 8-k April 1816 2016

https://biz.yahoo.com/e/160418/ltnc8-k.html

Other Events


Item 8.01 Other Events.
On April 15, 2016, the Company entered into a Note Settlement Agreement (the "Settlement Agreement") with Tailwind Partners, LLC, Tailwind Partners 3, LLC and Firehole River Capital, LLC (the "Noteholders") to settle the remaining portions of the convertible promissory notes dated June 6, 2014, in the original principal amount of $106,000.00, July 8, 2014 in the original principal amount of $106,000.00, July 22, 2014, in the original principal amount of $106,000.00 and October 31, 2014, in the original principal amount of $106,000.00 (the "Notes") that were held by the Noteholders as of that date. Under the terms of the Settlement Agreement, the Company paid a one-time lump sum of $120,000.00 for full settlement of any balance owed to the Noteholders as of April 15, 2016, including principal, interest, penalties, and fees and cancelled any warrants held by the Noteholders and/or their affiliates. The Company and the Noteholders mutually released each other from any past or future known or unknown claims and the Noteholders agreed to dismiss the lawsuit they filed against the Company.

On April 18, 2016, the Company made the final cash payment due to Eastmore Capital, LLC ("Eastmore") under a previously entered into Forbearance Agreement. This cash payment was the final payment due to Eastmore to pay off the convertible promissory note dated September 19, 2014, in the original principal amount of $110,000.00, issued to Eastmore.

On April 18, 2016, the Company made the final cash payment due to WHC Capital, LLC ("WHC") under a previously entered into Forbearance Agreement. This cash payment was the final payment due to WHC to pay off the convertible promissory note dated July 23, 2014, in the original principal amount of $101,000.00, issued to WHC.