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): March 27, 2014
__________________________________________
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. |
On March 27, 2014, Lakeland Industries, Inc.’s (the “Company”) China subsidiary, Weifang Lakeland Safety Products Co., Ltd (“WF” or “Borrower”), and Weifang Rural Credit Cooperative Bank (“WRCCB” or “Lender”) completed an agreement to obtain a line of credit for financing in the amount RMB 8,000,000 (approximately USD $1,287,000). The Company intends to draw down most of the amount, if not all, within a relatively short period of time. Below is a summary of the material terms of the loan facility:
| o | Amount of loan: | RMB 8,000,000 |
| o | Life of loan: | Six months due September 27, 2014 |
| o | Purpose of loan: | Purchase of materials. |
| o | Collateral is inventory owned by WF |
| o | Interest rate of loan and calculation: |
| o | Interest to be at 120% of the benchmark rate supplied by WRCCB (which is currently 5.6%). |
| o | Effective per annum interest rate: 6.72%; |
| o | Repayment of loan: within a six month period, optional payment periods, quarterly or monthly. |
| o | As of this date, no borrowings have been drawn down from this facility. |
| o | WRCCB has hired a professional firm to supervise WF’s inventory flow, which WF will pay yearly at a rate of RMB 40,000 (approximately US $6,450). |
| Item 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits. |
10.1 Loan Agreement, dated March 27, 2014, between the China subsidiary of Lakeland Industries, Weifang Lakeland Safety Products Inc., Ltd., and Weifang Rural Credit Cooperative Bank.
10.2 Summary of Exhibit 10.1 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. | ||
| /s/ Christopher J. Ryan | ||
| Christopher J. Ryan | ||
| Chief Executive Officer & | ||
| President | ||
| Date: April 2, 2014 | ||
EXHIBIT INDEX
Exhibit
| Number | Description | |
| 10.1 | Loan Agreement, dated March 27, 2014, between the China subsidiary of Lakeland Industries, Weifang Lakeland Safety Products Inc., Ltd., and Weifang Rural Credit Cooperative Bank. | |
| 10.2 | Summary of Exhibit 10.1 in English. | |