LAKELAND INDUSTRIES INC : Entry into a Material Definitive Agreement, Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)

Published: 2021-10-20 06:04:04 ET LAKE

Item 1.01 Entry into a Material Definitive Agreement.

On October 18, 2021, Lakeland Industries, Inc. (the "Company") entered into an Investment Agreement (the "Investment Agreement") with Inova Design Solutions Ltd, a private limited company incorporated under the laws of England and Wales and headquartered in the United Kingdom, doing business as Bodytrak® ("Bodytrak"), and the other parties thereto, pursuant to which Bodytrak agreed to issue and sell to the Company 508,905 cumulative convertible series A shares of Bodytrak ("Series A Shares") in exchange for a payment by the Company of £2,000,000, or £3.93 per Series A Share (the "Subscription Price"). The closing of this minority investment transaction occurred on October 18, 2021. The Series A Shares issued to the Company at the closing represent approximately 11.43% of Bodytrak's total share capital. Under the terms of the Investment Agreement, the Company may also elect, within 30 months of the date of the initial investment, to acquire up to an additional 381,679 Series A Shares of Bodytrak at the per share Subscription Price (or £1,500,000 assuming all 381,679 Series A Shares are acquired by the Company), which would result in the Company owning an aggregate of 18.42% of Bodytrak's share capital, assuming no other shares are issued by Bodytrak.

The parties to the Investment Agreement made certain representations and warranties that the Company believes to be customary for an investment transaction of this size. The Company funded its investment in Bodytrak using available cash on hand.

The foregoing description of the Investment Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Investment Agreement, a copy of which is attached to this Current Report on Form 8-K as Exhibit 10.1 and is incorporated herein by reference.

Item 7.01 Regulation FD Disclosure.

On October 19, 2021, the Company issued a press release regarding the Company's investment in Inova. The full text of the press release is attached hereto as Exhibit 99.1.

Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.