RONKONKOMA, N.Y., Oct. 24, 2014 /PRNewswire/ -- Lakeland
Industries, Inc. (NASDAQ: LAKE), a leading global manufacturer of
industrial protective clothing for industry, municipalities,
healthcare and to first responders on the federal, state and local
levels, today announced that it has entered into a definitive
securities purchase agreement to raise approximately $11.2 million in a private placement of common
stock sold at a price of $10.00 per
share.
Proceeds from the financing will be used to fully repay
Lakeland's 12% subordinated term loan with LKL Investments, LLC in
the approximate amount of $3.6
million. The balance of the proceeds will be used for
working capital and general corporate purposes, including
supporting the increased demand for Lakeland's safety products due
to the EBOLA crisis. Pending such usage, Lakeland intends to
temporarily pay down its senior revolving credit facility with
AloStar Bank of Commerce.
Christopher J. Ryan, the CEO of
Lakeland Industries, Inc., stated "This offering provides us with
the capital we need to turn our attention to our core businesses
and pay down expensive debt. Funding will go toward expanding
our production capacity for our ChemMAX® and MicroMAX® protective
suit lines in order to keep up with the significant global demand
we have seen from governments, health organizations, and hospitals
currently purchasing our fluid and pathogen resistant certified
hazmat suits and other accessory items such as boots, sleeves, and
aprons used in the fight against EBOLA."
Pursuant to a registration rights agreement, Lakeland is
required to file a registration statement for the resale of the
shares of common stock issued. The offering is expected to
close next week, subject to satisfaction of customary closing
conditions.
Craig-Hallum Capital Group LLC is acting as exclusive placement
agent in connection with this offering.
The shares of common stock to be sold in the private placement
have not been registered under the Securities Act of 1933, as
amended, or state securities laws and may not be offered or sold in
the United States absent effective
registration with the Securities and Exchange Commission (SEC) or
an applicable exemption from such registration requirements.
Lakeland has agreed to file a registration statement with the SEC
registering the resale of the shares of common stock.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these shares of common stock, nor
shall there be any sale of these shares in any state or other
jurisdiction in which such offer, solicitation or sale would be
unlawful.
About Lakeland Industries, Inc.:
Lakeland Industries,
Inc. (NASDAQ: LAKE) manufactures and sells a comprehensive line of
safety garments and accessories for the industrial protective
clothing market. Lakeland's products are sold by a direct
sales force and through independent sales representatives to a
network of over 1,200 safety and mill supply distributors. These
distributors in turn supply end user industrial customers such as
chemical/petrochemical, automobile, steel, glass, construction,
smelting, janitorial, pharmaceutical, and high technology
electronics manufacturers, as well as hospitals and laboratories.
In addition, Lakeland supplies federal, state, and local government
agencies, fire and police departments, airport crash rescue units,
the Department of Defense, the Centers for Disease Control and
Prevention, and many other federal and state agencies. For
more information concerning Lakeland, please visit the Company
online at www.lakeland.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Forward-looking statements involve risks,
uncertainties and assumptions as described from time to time in
Press Releases and Forms 8-K, registration statements, quarterly
and annual reports and other reports and filings filed with the
Securities and Exchange Commission or made by management. All
statements, other than statements of historical facts, which
address Lakeland's expectations of sources or uses for capital or
which express the Company's expectation for the future with respect
to financial performance or operating strategies can be identified
as forward-looking statements. As a result, there can be no
assurance that Lakeland's future results will not be materially
different from those described herein as "believed," "projected,"
"planned," "intended," "anticipated," "estimated" or "expected," or
other words which reflect the current view of the Company with
respect to future events. We caution readers that these
forward-looking statements speak only as of the date hereof.
The Company hereby expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
such statements to reflect any change in the Company's expectations
or any change in events conditions or circumstances on which such
statement is based.
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SOURCE Lakeland Industries, Inc.