LAKE - Lakeland Industries Shareholders Risk Dilution With New Offering

2024-07-15 14:51:14 ET

Summary

• Lakeland Industries, Inc. filed a $100 million mixed-shelf offering with the SEC, raising concerns about potential dilution for investors.
• The company's aggressive acquisition strategy has depleted its cash reserves, leading to the need for additional financing through equity or convertible debt.
• Despite strong performance during the pandemic, Lakeland's high valuation and increased dilution risk make it a questionable investment opportunity.

Last Friday, Lakeland Industries, Inc. ( LAKE ) filed a $100 million mixed-shelf offering with the SEC. A shelf offering is a precondition for companies to offer either their stock or convertible stock securities, like convertible debt....

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