TLSS Signs Agreement to Sell Assets of Shyp FX, Inc

Rhea-AI Summary

Transportation and Logistics Systems, Inc. (OTCQB:TLSS) announced an asset purchase agreement on April 28, 2022, to sell substantially all assets of its subsidiary, Shyp FX, Inc., for an all-cash transaction expected to yield net proceeds of approximately $755,000. The sale is anticipated to close shortly, with gross proceeds estimated at $830,000, adjusted for a $75,000 broker's commission. CEO Sebastian Giordano stated that this decision aligns with TLSS's long-term growth strategy as they explore other acquisition and expansion opportunities.

Positive

• Expected net proceeds of $755,000 from the asset sale.
• Gross proceeds estimated at $830,000, indicating a strong cash inflow.

Negative

• The sale of Shyp FX suggests a possible shift in operational focus away from certain business segments.
• Potential concerns about the long-term growth sustainability given the divestiture.

All-Cash Transaction is Expected to Close Shortly

JUPITER, FL / ACCESSWIRE / May 3, 2022 / Transportation and Logistics Systems, Inc. (OTCQB:TLSS), ("TLSS" or the "Company"), a logistics service provider, announced today that on April 28, 2022, its operating subsidiary, Shyp FX, Inc. ("FX"), which is exclusively dedicated to servicing Federal Express routes in northern New Jersey, had entered into an asset purchase agreement ("APA") to sell substantially all of its assets in an all-cash transaction expected to generate net proceeds of approximately $755,000, not accounting for expenses incurred by FX in negotiating or consummating the transaction.

Sebastian Giordano, Chairman and Chief Executive Officer of TLSS, commented, "As we continue to evaluate numerous acquisition targets and organic expansion opportunities, as well as, in anticipation of other near-term strategic moves we are contemplating, we have concluded that the operations of FX no longer fit into our long-term growth plans."

Under the terms of the APA, gross proceeds are approximately $830,000, inclusive of closing adjustments payable in cash at closing, adjusted for a broker's commission of $75,000. The Buyer has already been approved by Federal Express and is merely awaiting final setup processing within the Federal Express system to enable the transaction to close.

About Transportation and Logistics Systems, Inc.

TLSS, through its wholly owned operating subsidiaries, Cougar Express, Inc and Shyp FX, Inc., operates as a full-service logistics and transportation company. For more information, visit the Company's website, www.tlss-inc.com.

Forward-Looking Statements

Statements in this press release regarding the Company that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause actual future events or results to differ materially from such statements. Any such forward-looking statements, including, but not limited to, financial guidance, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not directly or exclusively relate to historical facts. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "could," "would," "expects," "plans," "anticipates," "intend," "plan," "goal," "seek," "strategy," "future," "likely," "believes," "estimates," "projects," "forecasts," "predicts," "potential," or the negative of those terms, and similar expressions and comparable terminology. These include, but are not limited to, statements relating to future events or our future financial and operating results, plans, objectives, expectations, and intentions. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these expectations may not be achieved. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they represent our intentions, plans, expectations, assumptions, and beliefs about future events and are subject to known and unknown risks, uncertainties and other factors outside of our control that could cause our actual results, performance or achievement to differ materially from those expressed or implied by these forward-looking statements. In addition to the risks described above, these risks and uncertainties include: our ability to successfully execute our business strategies, including integration of acquisitions and the future acquisition of other businesses to grow our company; customers' cancellation on short notice of master service agreements from which we derive a significant portion of our revenue or our failure to renew such master service agreements on favorable terms or at all; our ability to attract and retain key personnel and skilled labor to meet the requirements of our labor-intensive business or labor difficulties which could have an effect on our ability to bid for and successfully complete contracts; the ultimate geographic spread, duration and severity of the coronavirus outbreak and the effectiveness of actions taken, or actions that may be taken, by governmental authorities to contain the outbreak or ameliorate its effects; our failure to compete effectively in our highly competitive industry could reduce the number of new contracts awarded to us or adversely affect our market share and harm our financial performance; our ability to adopt and master new technologies and adjust certain fixed costs and expenses to adapt to our industry's and customers' evolving demands; our history of losses, deficiency in working capital and stockholders' equity and our ability to achieve sustained profitability; remaining weaknesses in our internal control over financial reporting and our ability to maintain effective controls over financial reporting in the future; our remaining liabilities and indebtedness could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations; unanticipated and materially adverse developments in our few remaining litigations; the impact of new or changed laws, regulations or other industry standards that could adversely affect our ability to conduct our business; and changes in general market, economic and political conditions in the United States and global economies or financial markets, including those resulting from natural or man-made disasters.

These forward-looking statements represent our estimates and assumptions only as of the date of this release and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this letter. Given these uncertainties, you should not place undue reliance on these forward-looking statements and should consider various factors, including the risks described, among other places, in our most recent Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q, as well as any amendments thereto, filed with the Securities and Exchange Commission.

Investor Relations Contact

Landon Capital
Keith Pinder
(404) 995-6671
kpinder@landoncapital.net
www.landoncapital.net

SOURCE: Transportation and Logistics Systems, Inc.

View source version on accesswire.com:
https://www.accesswire.com/699802/TLSS-Signs-Agreement-to-Sell-Assets-of-Shyp-FX-Inc

FAQ

What is the asset purchase agreement signed by TLSS?

TLSS signed an asset purchase agreement to sell substantially all of its subsidiary Shyp FX, Inc.'s assets.

When was the asset purchase agreement for Shyp FX executed?

The asset purchase agreement was executed on April 28, 2022.

What are the expected proceeds from the asset sale of Shyp FX?

The expected net proceeds from the asset sale are approximately $755,000.

What is the significance of the asset sale for TLSS?

The asset sale is part of TLSS's strategy to align its operations with long-term growth plans.

What are the gross proceeds from the asset sale before expenses?

The gross proceeds from the asset sale are estimated at $830,000.