Lakeland Living Up to Production Promises

The company increased spending for raw materials, hiring, and training of manufacturing personnel in this time, to account for the increase in product demand. As a result monthly capacity for ChemMax and MicroMax protective suit lines increased almost 50% from August, before the Ebola crisis hit. Lakeland is on track for a 100% increase from that level by January 2015.

Through its direct sales force and numerous distribution partners around the world, Lakeland has secured new orders relating to the fight against Ebola. Orders have been received from both government agencies and other private and public sector customers.

Christopher J. Ryan, CEO of Lakeland said:

Recent developments have enabled us to strengthen our balance sheet, increase forward cash flow from the elimination of interest service on expensive debt, and increase production capacity to contribute to the fight against the spread of Ebola which has led to a material improvement in our business. At the same time, we have also been experiencing an improvement in operating conditions for the balance of our business globally.  I am very proud of the way the worldwide team of Lakeland Industries has responded to the Ebola crisis while continuing to provide the highest level of service and quality garments to our traditional customers.

Recently Lakeland announced that it had entered into a definitive securities purchase agreement to raise approximately $11.2 million in a private placement of common stock, sold at a price of $10.00 per share. That price does seem excessively low considering its trading of late, but this does help it clean up its books and gives it capital to expand operations. Unfortunately, it also reminds traders and investors yet again that when companies have micro-cap values under $100 million, and where stocks have moved up exponentially, those companies can do things out of the blue that are harmful.

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Shares of Lakeland were recently trading up 30% to $15.14. It has moved over 9 million shares on the day with two hours left in regular trading. The company’s stock has a 52-week trading range of $4.75 to $29.55.