Labor Smart, Inc. Announces Letter of Intent to Acquire Illumination Holdings, Forging a Beverage and Snack Powerhouse

Rhea-AI Summary

Labor Smart, Inc. (OTC PINK:LTNC) has announced a Binding Letter of Intent to acquire Illumination Holdings, Inc., a subsidiary of Illumination Brands, Inc. This acquisition aims to create a beverage and snack powerhouse, combining LTNC's celebrity and athletic partnerships with Illumination Holdings' extensive distribution network. Key highlights include:

- Illumination Holdings generated $30 Million in Revenues in 2023
- Distribution across 5000+ retail locations in Colorado, Southern Wyoming, and South Dakota
- Brad Wyatt to join LTNC as Co-CEO and Board member
- Acquisition of Legacy Distribution Group with 175+ years of industry experience
- Exclusive distribution rights for several popular brands

The deal is expected to close within two weeks, with LTNC delivering a mix of restricted common and preferred shares, partly performance-based.

Positive

• Acquisition expected to create a beverage and snack powerhouse
• Illumination Holdings generated $30 Million in Revenues in fiscal 2023
• Expansion of distribution network to 5000+ retail locations across three states
• Acquisition includes valuable distribution licenses for beer, wine, alcohol, and tobacco
• Exclusive distribution rights for popular brands like Xing Tea, Go Fast, and GOAT Fuel Energy
• Acquisition expected to accelerate LTNC's business plans by 3 to 5 years

Negative

• Potential shareholder dilution due to issuance of new shares for acquisition
• Integration challenges during the 3-6 month transition period with co-CEOs
• Performance-based share issuance may not materialize if milestones are not met

JACKSON, WY / ACCESSWIRE / July 23, 2024 / Labor Smart, Inc. (OTC PINK:LTNC) (the "Company" or "LTNC") today announced it has issued a Binding Letter of Intent to acquire Illumination Holdings, Inc. a wholly owned subsidiary of Illumination Brands, Inc., a leading beverage and snack incubator, brand portfolio owner, and wholesale distributor.

The acquisition is expected to create a beverage and snack powerhouse, enhanced by LTNC's valuable celebrity and athletic partnerships. These strengths will be combined with Illumination Holdings' expansive distribution network, which generated approximately $30 Million in Revenues in fiscal 2023, across 5000+ large and small format retail locations spanning Colorado, Southern Wyoming, and South Dakota.

Coinciding with the acquisition, Brad Wyatt, Chief Executive Officer of Illumination Brands, Inc. and Illumination Holdings, Inc., will be appointed to the LTNC Board of Directors. Additionally, Mr. Wyatt will assume a Co-CEO role as counterpart to Tom Zarro, Chief Executive Officer of Labor Smart, Inc.

Mr. Wyatt and Mr. Zarro will Co-CEO during a 3-6 month integration period. Mr. Zarro will remain Chairman of the Board of Labor Smart, Inc. Scott Darnell, currently the Chief Strategy Officer of Illumination Holdings, Inc. will assume the role of Chief Strategy Officer of LTNC and be appointed to the LTNC Board of Directors.

Highlights of the acquisition include:

• Legacy Distribution Group, the Direct Store Delivery (DSD) operation that was acquired from New Age Beverage boasts over 175 years of collective beverage and snack incubation and distribution in the Colorado market

• Aspen Pure Water - Water brand with sales and distribution throughout Colorado

• Beer, Wine, Alcohol and Tobacco distribution licenses

• Exclusive distribution in Colorado of name brands such as Xing Tea, Go Fast, Aspen Pure, Rap Snacks, Karma, Recover 180, Cock n Bull, Jones Soda, Brew Dr. Kombucha, GOAT Fuel Energy, and more

• The DSD's beverage incubator has aided in the initial brand development and regional market penetration for many nationally recognized brands specifically including Monster, Rockstar, C4, Tommy Knockers, Celsius, Smart Water, and more.

Tom Zarro, Chief Executive Officer of Labor Smart, Inc., stated, "This deal is the culmination of countless hours of work by both teams. I believe this acquisition will position Labor Smart and its combined subsidiaries to accelerate our business plans by 3 to 5 years. More than acquiring prized assets and a well-run operation, I can't overstate the top talent joining the Company as part of this acquisition and the doors it will open for our LOCK'DIN Brand of performance beverages."

Brad Wyatt, Chief Executive Officer of Illumination Brands, stated, "The sale of Illumination Holdings and its assets is a strategic move for both companies and their shareholders. Both sides of this acquisition complement one another in leadership, brand development, and a second to none drive to grow both topline revenue and profitability. Our collective future is very bright with planned future acquisitions and current distribution agreements. The immediate result will enhance the company's ability to create, grow, and profitability monetize our existing and future brands. Our shared goals and vision will guide us toward continued success. I am excited about the invitation to join the team at Labor Smart and look forward to the integration of our teams."

At the closing, Labor Smart, Inc. will deliver a mix of restricted common and preferred shares of LTNC to Illumination Brands, Inc. for Illumination Holdings. A large portion of the share issuance will be performance-based and subject to the achievement of certain milestones. This acquisition is anticipated to be the first of several.

All parties are working diligently to prepare and approve the Definitive Acquisition Purchase Agreement. The Company expects the closing to occur within the next two weeks.

About Labor Smart, Inc.

Labor Smart, Inc. is a holding company focused on assets in the beverage space. Its primary business is Next Gen Beverages, operating as LOCK'DIN™ Beverages. LOCK'DIN™ delivers life-changing, science-driven functional beverages formulated to provide athletes, entrepreneurs and everyday achievers safe and effective natural products that help improve performance and recovery without compromising health. The Brand offers four ready-to-drink beverages, including a world-class Hydrogen Water, a Nootropic Functional Drink, and a functional Coffee. The global brand is endorsed by World Famous Boxing Champion, Manny Pacquiao, who uses the products daily in his training regimen and is also an investor, shareholder and member of the company's Board of Directors.

About Illumination Holdings

Illumination Holdings is a vertically integrated distribution and brand incubation company focusing on creating new point-of-sales for consumer products while acquiring, innovating, and incubating brands owned by our company and clients. Boasting a distribution network of over 5000 large and small format locations ranging from independent and chain stores to hundreds of on-premise and non-traditional points of sales including high schools, hotels, commercial and government businesses.

About LOCK'DIN™ Beverages

LOCK'DIN™ delivers life-changing, science-driven products formulated to provide athletes, entrepreneurs and everyday achievers safe and effective natural products that help improve performance and recovery without compromising health. The Brand offers four ready-to-drink beverages, including a best-in-class hydrogen water, and a Nootropic functional Coffee.

LOCK'DIN™ is a global brand endorsed by World Famous Boxing Champion Manny Pacquiao who uses the products daily in his training regimen and is also an investor, shareholder and member of the company's Board of Directors.

Visit www.lockdin.com to try our products and experience what it means to be LOCK'DIN!

Safe Harbor Statement

This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including our financial performance and projections, revenue and earnings growth, and business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: (i) potential failure to meet projected development and related targets; (ii) changes in applicable laws or regulations that may impact our products and business; and (iii) other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the OTC Markets by the Company. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.

CONTACT:

Investor Relations: ir@lockdin.com
Customer Service: customerservice@lockdin.com
www.lockdin.com | @LiveLockdIn

SOURCE: Labor Smart, Inc.

View the original press release on accesswire.com

FAQ

What company is Labor Smart, Inc. (LTNC) acquiring?

Labor Smart, Inc. (LTNC) is acquiring Illumination Holdings, Inc., a wholly owned subsidiary of Illumination Brands, Inc.

How much revenue did Illumination Holdings generate in fiscal 2023?

Illumination Holdings generated approximately $30 Million in Revenues in fiscal 2023.

What is the distribution reach of Illumination Holdings?

Illumination Holdings has a distribution network spanning 5000+ large and small format retail locations across Colorado, Southern Wyoming, and South Dakota.

Who will be the new Co-CEO of LTNC after the acquisition?

Brad Wyatt, currently the CEO of Illumination Brands and Illumination Holdings, will become Co-CEO of LTNC alongside Tom Zarro.

What are some key assets included in the LTNC acquisition of Illumination Holdings?

The acquisition includes Legacy Distribution Group, Aspen Pure Water brand, beer, wine, alcohol and tobacco distribution licenses, and exclusive distribution rights for several popular beverage and snack brands in Colorado.