Educational Development Corporation announced that its board has approved a new share repurchase program authorizing the company to repurchase up to 800,000 shares, representing approximately 10% of the Company's outstanding common stock. This new plan replaces the existing stock repurchase plan which was approved by the board in April 2008, and has approximately 600,000 shares remaining available for repurchase.
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Red Oak Partners, a long-term investor in Educational Development Corporation and the largest outside investor with a 7.7% ownership stake, announced that it has issued a letter to the Board of Directors of EDUC expressing serious concerns with the company's troubling corporate governance practices, Board composition, and misaligned management incentive plan proposal and Red Oak's intention to oppose the election of the Class II directors and the proposed management equity incentive plan at the upcoming 2018 Annual Meeting scheduled to be held on July 24. Red Oak has also called upon EDUC's Board to work with its shareholders to address the significant concerns regarding EDUC's corporate governance practices.
Educational Development Corporation announced the execution of the Eighth Amendment to Loan Agreement. Randall White, CEO of Educational Development Corporation, announced that the Company has executed the Eighth Amendment to the Loan Agreement with its primary lender. The Amendment modifies the Loan Agreement, extending the termination date until August 15, 2019, reduces the interest rate pricing grid for all floating rate borrowings covered by the Loan Agreement, establishes a new $3,000,000 advancing term loan to be used for capital expenditures to increase daily shipping capacity, releases the personal Guaranty of Randall W. White and Carol White, along with other loan covenant requirements being lessened. Per Mr. White, "We are pleased to announce that the continued financial improvements we have made over the past year have had a positive impact with our bank. The changes with our bank over the last year to increase our line and reduce our effective borrowing rate, among other positive changes, reflect their continued support and desire to work with us on a go forward basis. We look forward to the improved profitability from these changes on our current fiscal year as well as years to come."