Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
As previously reported by Lakeland Industries, Inc.
(the "Company"), on March
, the Company's China
subsidiary, Weifang Lakeland Safety Products Co.,
("WF"), entered into a line of credit financing arrangement with Weifang
Rural Credit Cooperative Bank
(the "Lender"), which is now known as the Shandong
Anqiu Rural Commercial Bank Co., Ltd.
On June 28, 2014
, WF borrowed the full committed amount of RMB 8,000,000
(approximately USD $1.3 million
) under the line of credit with Lender. All of
the then outstanding principal and interest under the loan will be due on
December 24, 2014
. Borrowings under the loan bear interest at an effective
interest rate of 6.72% per annum.
WF will use the proceeds of the loan to distribute a cash dividend to the
Company pursuant to a plan for future dividends previously approved by the
Company's Board of Directors. This dividend and future dividend policy is part
of Lakeland's worldwide cash management program.
The foregoing description of the loan is qualified in its entirety by reference
to the full text of the loan agreement, a copy of which was attached as Exhibit
10.1 and Exhibit 10.2 (English translation) to the Company's Form 8-K filed with
the Securities and Exchange Commission
on April 2, 2014
, and is incorporated by
reference into this Item 2.03.