Kimmy the TSGL CEO was the COO of the Ryan Schadel share selling scheme LTNC - Schadel is using TSGL as a money grab.
From the financials: "On April 1, 2016, the Company purchased the operating assets of four (4) branch locations in Charlotte, NC, Indianapolis, IN, Nashville, TN and Raleigh, NC from Labor Smart, Inc. for consideration with a fair value of $2,666,000." Here is the best part - the TCA loan all went to Schadel.
"On May 26, 2016, the Company entered into a Convertible Promissory Note (“Note”) with Group 10 Holdings, LLC (“Holder”) in the original
principal amount of $100,000 bearing a 10% annual interest rate and maturing December 26, 2016."
"On September 27, 2016, the Company entered into a Convertible Promissory Note (“Note”) with Carebourn Capital, L.P. (“Holder”) in the original
principal amount of $236,325 less transaction costs of $36,325 bearing a 12% annual interest rate and maturing September 27, 2017."
Here is the killer part of the TCA deal"
"On March 29, 2016, with an effective date of April 5, 2016, the Company entered into a Senior Secured Revolving Credit Facility Agreement (the “Credit Agreement”) with TCA Global Credit Master Fund, LP, a Cayman Islands limited partnership “TCA”), pursuant to which TCA agreed to loan up to a maximum of three million dollars ($3,000,000.00) to us for working capital purposes. A total of $1,300,000 was funded by TCA in connection with the closing...
The initial Revolving Note in the amount of $1,300,000 is due and payable along with interest thereon on October 5, 2016, and bears interest at the minimum rate of 12% per annum, increasing to 18% per annum upon the occurrence of an Event of Default, as defined in the Credit Agreement...
We also agreed to pay TCA an advisory fee of $750,000, payable in shares of the Company’s Series B Preferred Stock."
Now that is a sweetheart deal for TCA - a $750,000 advisory fee.
This is a great example of toxic funding.
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