Lakeland Fire + Safety Announces Pricing of Public Offering of $40.0 Million of Common Stock

Rhea-AI Summary

Lakeland Industries (NASDAQ:LAKE) has announced the pricing of its underwritten public offering of 1,820,000 shares of common stock at $22.00 per share, expecting to raise approximately $40.0 million in gross proceeds. The company has granted underwriters a 45-day option to purchase up to 273,000 additional shares to cover over-allotments.

The offering is expected to close on January 24, 2025. Roth Capital Partners is acting as sole book-running manager, with Lake Street Capital Markets and Maxim Group as co-managers. Lakeland plans to use the net proceeds for debt repayment, operations growth, working capital, and general corporate purposes.

Positive

• Raising $40.0 million in gross proceeds to strengthen financial position
• Proceeds will be used to repay debt, improving balance sheet
• Additional capital available for business growth and operations

Negative

• Potential dilution for existing shareholders through issuance of 1,820,000 new shares
• Additional dilution possible if over-allotment option of 273,000 shares is exercised

Insights

Financial Analyst

Lakeland's $40 million public offering marks a substantial capital raise, representing approximately 21% of the company's current market capitalization. The pricing at $22.00 per share reflects a strategic discount to facilitate successful placement, though it will result in immediate dilution for existing shareholders.

Several key aspects warrant attention:

• The offering's size relative to market cap suggests a transformative move rather than routine financing
• The prioritization of debt repayment indicates a strategic shift toward a stronger balance sheet, which could enhance financial flexibility
• The timing aligns with broader market trends in the protective equipment sector, where companies are positioning for growth as industrial and healthcare demand evolves

The inclusion of an over-allotment option for additional 273,000 shares (15% of the base offering) provides flexibility to meet excess demand, potentially bringing total proceeds to $46 million. While dilutive in the short term, this capital infusion could accelerate Lakeland's growth initiatives and market position in the protective clothing industry, particularly as global demand for safety equipment remains robust.

The selection of multiple underwriters - Roth Capital Partners as lead, with Lake Street Capital Markets and Maxim Group as co-managers - suggests a well-coordinated distribution strategy to ensure successful placement. This comprehensive approach to the offering indicates strong institutional interest and confidence in Lakeland's growth trajectory.

HUNTSVILLE, AL / ACCESS Newswire / January 23, 2025 / Lakeland Industries, Inc. ("Lakeland Fire + Safety" or "Lakeland") (NASDAQ:LAKE), a leading global manufacturer of protective clothing for industry, healthcare, and first responders, today announced that it has priced its underwritten public offering of 1,820,000 shares of its common stock at a public offering price of $22.00 per share.

Lakeland expects the gross proceeds from the offering to be approximately $40.0 million, before deducting the underwriting discount and other estimated offering expenses payable by Lakeland.

Roth Capital Partners is acting as sole book-running manager, and Lake Street Capital Markets, LLC and Maxim Group LLC are acting as co-managers for the offering.

Lakeland intends to use the net proceeds from the proposed offering for the repayment of certain indebtedness, and for operations and the growth of its business, including working capital and other general corporate purposes.

Lakeland has granted the underwriters in the offering a 45-day option to purchase up to 273,000 additional shares of common stock solely to cover over-allotments. Lakeland expects to close the offering, subject to market and other conditions, on or about January 24, 2025.

A shelf registration statement on Form S-3 (File No. 333-280783) relating to the shares was previously filed with the Securities and Exchange Commission (the "SEC") and became effective on July 23, 2024. The offering will be made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering has been filed with the SEC and is available on the SEC's website at www.sec.gov. A copy of the final prospectus supplement and accompanying prospectus, when available, may be obtained by contacting: Roth Capital Partners, LLC, 888 San Clemente, Suite 400, Newport Beach, CA 92660, by telephone at (800) 678-9147 or by email at rothecm@roth.com; Lake Street Capital Markets, LLC, 920 Second Avenue South, Suite 700, Minneapolis, MN 55402, by telephone at (612) 326-1305, or by email at prospectus@lakestreetcm.com; or Maxim Group LLC, 300 Park Avenue, 16th Floor, New York, NY 10022, at (212) 895-3745.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the shares of common stock, nor will there be any sale of the shares of common stock in any state or other jurisdiction in which such offer, solicitation or sale is not permitted.

About Lakeland Fire + Safety

Lakeland Fire + Safety manufactures and sells a comprehensive line of fire services and industrial protective clothing and accessories for the industrial and first responder markets. Our products are sold globally by our in-house sales teams, our customer service group, and authorized independent sales representatives to a network of over 2,000 global safety and industrial supply distributors. Our authorized distributors supply end users, such as integrated oil, chemical/petrochemical, automobile, transportation, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high technology electronics manufacturers, as well as scientific, medical laboratories and the utilities industry. In addition, we supply federal, state and local governmental agencies and departments, such as fire and law enforcement, airport crash rescue units, the Department of Defense, the Department of Homeland Security and the Centers for Disease Control. Internationally, we sell to a mixture of end users directly and to industrial distributors, depending on the particular country and market. In addition to the United States, sales are made into more than 50 foreign countries, the majority of which were into China, the European Economic Community ("EEC"), Canada, Chile, Argentina, Russia, Kazakhstan, Colombia, Mexico, Ecuador, India, Uruguay, Middle East, Southeast Asia, Australia, Hong Kong and New Zealand.

For more information concerning Lakeland, please visit the Company online at www.lakeland.com.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995

This press release contains "forward-looking statements" as that phrase is defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, which address Lakeland's expectations of sources or uses for capital or which express the Company's expectation for the future with respect to financial performance or operating strategies, including statements regarding the public offering and the use of proceeds therefrom, can be identified as forward-looking statements. Forward-looking statements involve risks, uncertainties and assumptions as described from time to time in Press Releases and Forms 8-K, registration statements, quarterly and annual reports and other reports and filings filed with the Securities and Exchange Commission or made by management. As a result, there can be no assurance that Lakeland's future results will not be materially different from those described herein as "believed," "projected," "planned," "intended," "anticipated," "can," "estimated" or "expected," or other words which reflect the current view of the Company with respect to future events. We caution readers that these forward-looking statements speak only as of the date hereof. The Company hereby expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which such statement is based, except as may be required by law.

Contacts

Lakeland Fire + Safety
256-600-1390
Roger Shannon
rdshannon@lakeland.com

Investor Relations
Chris Tyson
Executive Vice President
MZ Group - MZ North America
949-491-8235
LAKE@mzgroup.us
www.mzgroup.us

SOURCE: Lakeland Industries, Inc.

View the original press release on ACCESS Newswire

FAQ

What is the price per share for LAKE's January 2025 public offering?

Lakeland Industries (LAKE) has priced its public offering at $22.00 per share.

How many shares is LAKE offering in its January 2025 public offering?

Lakeland is offering 1,820,000 shares of common stock, with an additional over-allotment option of 273,000 shares.

How much money does LAKE expect to raise from its January 2025 offering?

Lakeland expects to raise approximately $40.0 million in gross proceeds from the offering.

What will LAKE use the proceeds from its January 2025 offering for?

Lakeland intends to use the proceeds for debt repayment, operations growth, working capital, and general corporate purposes.

When is LAKE's January 2025 public offering expected to close?

The offering is expected to close on or about January 24, 2025, subject to market and other conditions.

Who are the underwriters for LAKE's January 2025 public offering?

Roth Capital Partners is the sole book-running manager, with Lake Street Capital Markets and Maxim Group as co-managers.