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The Staffing Group, Ltd. Letter to Shareholders

ATLANTA, GA--(Marketwired - Apr 25, 2016) - The Staffing Group, Ltd. (OTC PINK: TSGL) (the "Company"), an emerging public company specializing in leveraged buyout transactions and restructurings with a focus on verticals within the 115 billion dollar U.S. staffing industry, today issued the follow letter to shareholders:

Dear Shareholders,

It is my pleasure to provide details regarding our recent acquisition and insight into expectations for future growth.

Platform Acquisition:

On April 1, 2016, we completed the asset purchase of four office locations from Labor Smart, Inc., our largest shareholder. These offices will continue to operate under the laborSMART™ brand pursuant to a licensing agreement we entered into with Labor Smart, Inc. in 2015.

On an annualized basis, we project 2016 topline revenue and EBITDA from these acquired office locations to exceed $7.5 million and $800k respectively.

This is in addition to the laborSMART™ branded office location we opened in Montgomery, AL through our 51% controlled subsidiary, Staff Fund I, LLC.

Acquisition Pipeline:

On February 11, 2016, we announced plans to acquire a North Dakota industrial staffing firm. Pending final due diligence, we anticipate a closing of this acquisition in the 3rd quarter of 2016. This potential acquisition will carry a similar deal structure consistent with our capital allocation strategy: 1/3 stock, 1/3 cash, and 1/3 seller carried debt with a total acquisition multiple of 3.64 or less times EBITDA. In addition, we maintain that due to the upside opportunity of this Platform Acquisition, we will require the completion of our $5 million private placement for future working capital prior to closing this transaction.

We continue to build a pipeline of potential acquisitions that achieve our goal of achieving annual revenues of $75 million within the next 3 years. While we have completed our first Platform Acquisition, we seek to acquire additional premium brands within the light industrial staffing industry with scalable business models, in addition to bolt-on acquisitions.

Key's to Future Success:

  • Source a high volume of acquisition targets; close quickly on the best

  • Acquire profitable, cash generating businesses with diverse customer bases

  • Retain the best sales, management, and operations talent from each acquisition

  • Protect, leverage, and enhance our balance sheet and cash flow with each transaction

I am ecstatic about what is to come and what has already transpired this year. This solid plan will enable us to gain profitability quickly and build a solid foundation for rapid growth. I look forward to updating you on our continued success well into the future.


Kimberly Thompson
Chief Executive Officer
The Staffing Group, Ltd.

About The Staffing Group, Ltd.

The Staffing Group, Ltd. is executing an aggressive buy-and-build strategy through the acquisition and integration of small to medium sized staffing businesses with focus on the light industrial, engineering, manufacturing and construction staffing space. The Company believes the light industrial staffing segment is ripe for consolidation and will seek accretive acquisitions that will drive annual revenues to $75 million within the next 3 years.

Safe Harbor Statement
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of The Staffing Group, Ltd.., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may", "would", "will", "expect", "estimate", "can", "believe", "potential", and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond The Staffing Group, Ltd.'s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in The Staffing Group, Ltd.'s filings with the U.S. Securities and Exchange Commission.