Shares of Lakeland Industries Inc. (LAKE) tumbled 5% in early trade after the company 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.
The company said the 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.
Christopher J. Ryan, the CEO of Lakeland Industries, Inc., said in a statement that “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.”
In the past 52 weeks, shares of Ronkonkoma, New York-based company have traded between a low of $4.75 and a high of $29.55 and are now at $14.85. Shares are up 172.99% year-over-year and 190.11% year-to-date.