UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 19, 2013
__________________________________________
Lakeland Industries, Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 0-15535 | 13-3115216 |
| (State or other jurisdiction | (Commission | (IRS Employer |
| of incorporation) | File Number) | Identification No.) |
701 Koehler Avenue, Suite 7, Ronkonkoma, New York 11779-7410
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (631) 981-9700
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 1.01 | Entry into a Material Definitive Agreement |
Extension of UK Financing
On December 19, 2013, Lakeland Industries Europe, Ltd., a wholly owned subsidiary of Lakeland Industries, Inc. (the “Company”), entered into a one-year extension of its existing financing facility with HSBC Invoice Finance (UK) Ltd., pursuant to the same terms as disclosed in the Company’s Form 8-K filed with the SEC on February 22, 2013, except for:
| 1. | the facility limit was raised from £1,000,000 (approximately USD $1.6 million) to £1,250,000 (approximately USD $2.0 million) |
| 2. | the prepayment percentage (advance rate) was raised from 80% to 85%. The facility will now have a due date of December 19, 2014. |
Brazil Financings
New loan with Bank Itau
On December 19, 2013, Lakeland Brasil, S.A., a wholly owned subsidiary of the Company completed a new loan in the amount of $R500,000 (approximately USD $211,000) with Bank Itau at an interest rate of 1.53% per month. The proceeds of the loan are primarily for working capital purposes. The material terms of the loan are as follows:
Lender: Bank Itau
Principal Amount: $R500,000 (approximately USD $211,000)
Due Date: July 31, 2014
Interest rate: 1.53% per month
Principal payments: $R76,360,82 monthly commencing January 31, 2014 (approximately USD $32,000)
Collateral: Customer contracts
| Item 2.03 | Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of the Registrant |
| The disclosures set forth in Item 1.01 are incorporated by reference to this item |
| Item 8.01 | Other Events |
Factoring Agreement
On December 12, 2013, Lakeland Brasil, S.A., a subsidiary of the Company, completed an arrangement with Valecred Securitizadora Mobiliaria, S.A. to factor, with recourse, specific invoices totaling $R301,947 (approximately USD $127,000) for a fee of $R7,291 (approximately USD $3,100). This transaction is not considered material to the Company and is being disclosed along with the transactions reported herein.
| Item 9.01 | Financial Statements and Exhibits. |
Exhibits. The following exhibits are being furnished herewith:
| 10.1 | Agreement for the Purchase of Debts, dated December 19, 2013 |
| 10.2 | Replacement Schedule, dated December 19, 2013 |
| 10.3 | Loan Agreement dated on December 19, 2013 between Lakeland Industries, Inc. and Bank Itau in Brazil to borrow R$500.000 (approximately USD $211,000 ) for working capital |
| 10.4 | Summary of Exhibit 10.3 in English |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LAKELAND INDUSTRIES, INC. | |
| Date: December 23, 2013 | |
| /s/ Gary Pokrassa | |
| Gary Pokrassa | |
| CFO |
EXHIBIT INDEX
| Exhibit | ||
| Number | Description | |
| 10.1 | Agreement for the Purchase of Debts, dated December 19, 2013 | |
| 10.2 | Replacement Schedule, dated December 19, 2013 | |
| 10.3 | Loan Agreement dated on December 19, 2013 between Lakeland Industries, Inc. and Bank Itau in Brazil to borrow R$ 500.000 (approximately USD $211,000 ) for working capital | |
| 10.4 | Summary of Exhibit 10.3 in English |