Educational Development Corporation Terminates Sale and Leaseback of Hilti Complex with Rockford Holdings

Rhea-AI Summary

Educational Development (NASDAQ: EDUC) has terminated its agreement with Rockford Holdings for the sale and leaseback of its Hilti Complex in Tulsa, Oklahoma. The decision was made after Rockford couldn't meet the original terms, and proposed changes were deemed not in the best interest of EDC's stakeholders. Despite this setback, EDC remains optimistic about finding a new buyer soon.

The company has updated its marketing materials to include recent lease changes, notably a new lease for approximately 25% of the office and warehouse space with Crusoe Energy Systems. CEO Craig White expressed confidence that these updates will positively impact the current list of interested parties in the Hilti Complex.

Positive

• New lease agreement with Crusoe Energy Systems for 25% of the Hilti Complex
• Updated marketing materials expected to attract new potential buyers
• Management's confidence in engaging a new buyer soon

Negative

• Termination of sale and leaseback agreement with Rockford Holdings
• Delay in monetizing the Hilti Complex asset

Tulsa, Oklahoma--(Newsfile Corp. - September 18, 2024) - Educational Development Corporation (NASDAQ: EDUC) ("EDC", the "Company" or "Seller") (http://www.edcpub.com) today announced that on September 12, 2024, the Company terminated its agreement with Rockford Holdings ("Rockford" or "Buyer") after receiving notice that Rockford could not meet the terms of the agreement to purchase the Company's headquarters and distribution warehouse located at 5400-5402 South 122^nd East Avenue, Tulsa, Oklahoma 74146 (the "Hilti Complex"). The original purchase agreement was dated June 6, 2024.

Per Craig White, President and Chief Executive Officer, "We recently received notification from the Rockford Group that they could not meet the terms of the original purchase agreement. In evaluating their proposed changes to the agreement, we determined that the new terms were not in the best interest of our stakeholders including our bank, vendors, customers, and shareholders, thus mutually agreeing to terminate the agreement."

"We have updated our marketing materials for the Hilti Complex to include recent lease changes, including the new lease for approximately 25% of the office and warehouse space with Crusoe Energy Systems. We are confident that this updated memorandum will positively impact the current list of interested parties in the Hilti Complex, and we fully expect to engage a new buyer soon," concluded Mr. White.

About Educational Development Corporation (EDC)

EDC began as a publishing company specializing in books for children. EDC is the owner and exclusive publisher of Kane Miller Books ("Kane Miller"); Learning Wrap-Ups, maker of educational manipulatives; and SmartLab Toys, maker of STEAM-based toys and games. EDC is also the exclusive United States MLM distributor of Usborne Publishing Limited ("Usborne") children's books. EDC-owned products are sold via 4,000 retail outlets and EDC and Usborne products are offered by independent brand partners who hold book showings through social media, book fairs with schools and public libraries, in individual homes, as well as other in-person events and internet sales.

Contact:
Educational Development Corporation
Craig White, (918) 622-4522

Investor Relations:
Three Part Advisors, LLC
Steven Hooser (214) 872-2710

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/223811

FAQ

Why did Educational Development (EDUC) terminate its sale and leaseback agreement with Rockford Holdings?

EDUC terminated the agreement on September 12, 2024, because Rockford Holdings couldn't meet the original terms, and their proposed changes were not in the best interest of EDUC's stakeholders, including the bank, vendors, customers, and shareholders.

What new developments have occurred with EDUC's Hilti Complex property since the termination of the Rockford Holdings deal?

EDUC has updated its marketing materials for the Hilti Complex, including a new lease agreement with Crusoe Energy Systems for approximately 25% of the office and warehouse space.

When was the original purchase agreement between EDUC and Rockford Holdings signed for the Hilti Complex?

The original purchase agreement between Educational Development (EDUC) and Rockford Holdings for the Hilti Complex was dated June 6, 2024.

What is EDUC's outlook on finding a new buyer for the Hilti Complex after the Rockford Holdings deal termination?

EDUC's management is confident that the updated marketing materials will positively impact the current list of interested parties, and they fully expect to engage a new buyer for the Hilti Complex soon.