Educational Development Corporation Announces Renewal of Revolving Line of Credit
August 27 2020 - 5:25PM
Educational Development Corporation (“EDC”, or the “Company”)
(NASDAQ: EDUC) (http://www.edcpub.com) today announces the renewal
of the revolving line of credit.
Randall White, CEO of Educational Development
Corporation, announced the Company has renewed the line of credit
with its lender, MidFirst Bank, for another year with a maximum
revolving principal amount of $10,000,000.
Per Mr. White, “I am pleased to announce that we
have renewed our line of credit with our lender for another
year. Due to our recent growth, we have generated
increased cash flows from operations. We ended the
month of July 2020 with no borrowings on the line of credit and
over $23.3 million in cash on our balance sheet. In
addition, we expect our cash balances to remain strong through the
fall as we experience continued growth in our UBAM
division. UBAM sales are primarily generated through
prepaid e-commerce orders which have a positive impact on cash
flows.”
Mr. White concluded, “Having this line of credit
provides additional security as we are purchasing increased
inventory volumes to keep up with our recent sales
growth.”
About Educational Development Corporation
(EDC)
EDC is a publishing company specializing in
books for children. EDC is the exclusive United States trade
co-publisher of the line of educational children’s books produced
in the United Kingdom by Usborne Publishing Limited (“Usborne”) and
we also exclusively publish books through our ownership of Kane
Miller Book Publisher (“Kane Miller”); both international
award-winning publishers of children’s books. EDC’s current
catalog contains over 2,000 titles, with new additions
semi-annually. Both Usborne and Kane Miller products are sold
via 4,000 retail outlets and by independent consultants, who hold
book showings in individual homes, book fairs with school and
public libraries as well as sales over the internet.
Contact:
Educational Development
Corporation
Randall White, (918) 622-4522
Cautionary Statement for the Purpose of the “Safe
Harbor” Provision of the Private Securities Litigation Reform Act
of 1995.
The information discussed in this Press Release
includes “forward-looking statements.” These forward-looking
statements are identified by their use of terms and phrases such as
“may,” “expect,” “estimate,” “project,” “plan,” “believe,”
“intend,” “achievable,” “anticipate,” “continue,” “potential,”
“should,” “could,” and similar terms and phrases. Although we
believe that the expectations reflected in these forward-looking
statements are reasonable, they do involve certain assumptions,
risks and uncertainties and we can give no assurance that such
expectations or assumptions will be achieved. Known and
unknown risks, uncertainties and other factors may cause our actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by forward-looking statements. Factors that could
cause or contribute to such differences include, but are not
limited to, our success in recruiting and retaining new
consultants, our ability to locate and procure desired books, our
ability to ship the volume of orders that are received without
creating backlogs, our ability to obtain adequate financing
for working capital and capital expenditures, economic and
competitive conditions, regulatory changes and other uncertainties,
as well as those factors discussed in our Annual Report on Form
10-K for the year ended February 29, 2020, all of which are
difficult to predict. In light of these risks, uncertainties
and assumptions, the forward-looking events discussed may not
occur. All forward-looking statements attributable to us or
persons acting on our behalf are expressly qualified in their
entirety by the cautionary statements in this paragraph and
elsewhere in our Annual Report on Form 10-K for the year ended
February 29, 2020 and speak only as of the date of this Press
Release. Other than as required under the securities laws, we
do not assume a duty to update these forward-looking statements,
whether as a result of new information, subsequent events or
circumstances, changes in expectations or otherwise.
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