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Educational Development Corporation Announces Board Approval to List Company Headquarters for Sale
Tulsa, Oklahoma--(Newsfile Corp. - November 15, 2023) - On November 15, 2023, Educational Development Corporation (NASDAQ: EDUC) announced, via press release,
About this update from Educational Development Corporation
[{"type":"text","content":"Tulsa, Oklahoma--(Newsfile Corp. - November 15, 2023) - On November 15, 2023, Educational Development Corporation (NASDAQ: EDUC) announced, via press release, Board of Director approval to list for sale the Company's headquarters and distribution warehouse located at 5400-5402 South 122nd East Avenue, Tulsa, Oklahoma 74146 (the \"Hilti Complex\") with a licensed commercial real estate broker by November 30, 2023. The Hilti Complex consists of multiple buildings totaling 402,255 square feet of rentable office and warehouse space on 34-acres. Approximately 185,400 square feet of the Hilti Complex is occupied by a third-party tenant under a 15-year lease, with the Company occupying the remaining 216,855 square feet. The Board approved the Hilti Complex sale, with or without the adjacent 17 acres of excess land located behind the Hilti Complex. The Hilti Complex, without the adjacent excess land, was appraised for $40,510,000 in July 2023. The 17 acres of adjacent excess land appraised for $1,460,000.\nThe Company expects to enter into a sale leaseback arrangement with the building sale including a lease term of seven to fifteen years to maximize the sale price. Proceeds from the sale are expected to pay the Company's borrowings with its bank and provide liquidity for ongoing operations.\nPer Craig White, President and Chief Executive Officer, \"It has been management's number one priority to reduce our debt and related interest expense. In line with our prior announcement, we closed on the sale/leaseback arrangement of our warehouse facility which allowed us to strategically reduce our term debt with the Bank by $4.7 million. The proceeds from that transaction, combined with our forthcoming sale of the Company's headquarters and distribution facility, will play a pivotal role in removing interest expense and restoring profitability. Following the sale of the Hilti Complex, we expect to operate with minimal borrowings thus improving our bottom-line profitability. Although the Company continues to maintain high levels of inventory, without debt this excess inventory turns to cash, allowing us to strategically deploy the proceeds to maximize shareholder value.\"\nAbout Educational Development Corporation (EDC)\nEDC began as a publishing company specializing in books for children. EDC is the owner and exclusive publisher of Kane Miller...