Lakeland completes funding of $18.5mn

02 Jul '13

4 min read

"It should be noted that shareholder interests are paramount in our mind. The great majority of Lakeland's entire management team took a voluntary 8% cash pay cut immediately after the loss of the DuPont agreement in July 2011. In October 2012, top management, being the CEO, CFO and COO also took an additional 30% cash pay cut in return for restricted stock that does not vest for two years.

“In my experience you rarely see public company management do this. Additionally, the Board of Directors cut their compensation significantly in May of 2013. These actions were taken in the best interest of the Company and our stockholders.

I believe the dilution involved with the issuance of the warrant in connection with the incurrence of subordinated debt is very manageable and allows a lender like this to make an investment in Lakeland. Management believes this is a favorable deal for stockholders' value in the long term, given the more dilutive offers made by all other parties talked to with similar investment goals in Lakeland over the last year."

Lakeland Industries Inc.

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