Educational Development Corp Enters Material Definitive Agreement
Ticker: EDUC · Form: 8-K · Filed: Sep 23, 2024 · CIK: 31667
Sentiment: neutral
Topics: material-definitive-agreement
TL;DR
EDC signed a big deal on 9/19, details TBD.
AI Summary
Educational Development Corporation (EDC) entered into a Material Definitive Agreement on September 19, 2024. The filing does not disclose the specifics of this agreement or any associated financial figures. The company is incorporated in Delaware and its principal executive offices are located in Tulsa, Oklahoma.
Why It Matters
This filing indicates a significant new contract or partnership for Educational Development Corporation, the details of which will be crucial for investors to understand future business prospects.
Risk Assessment
Risk Level: medium — The lack of specific details regarding the material definitive agreement introduces uncertainty about its impact on the company's financial health and future operations.
Key Players & Entities
- EDUCATIONAL DEVELOPMENT CORPORATION (company) — Registrant
- September 19, 2024 (date) — Date of earliest event reported
- September 23, 2024 (date) — Date of report
- Delaware (jurisdiction) — State of incorporation
- Tulsa, Oklahoma (location) — Principal executive offices
FAQ
What is the nature of the Material Definitive Agreement entered into by Educational Development Corporation?
The filing does not specify the details of the Material Definitive Agreement, only that one was entered into on September 19, 2024.
When was the Material Definitive Agreement entered into?
The Material Definitive Agreement was entered into on September 19, 2024.
What is the company's principal executive office location?
The company's principal executive offices are located at 5402 S 122nd East Ave, Tulsa, Oklahoma 74146.
What is the Commission File Number for Educational Development Corporation?
The Commission File Number for Educational Development Corporation is 000-04957.
What is the I.R.S Employer Identification No. for Educational Development Corporation?
The I.R.S Employer Identification No. for Educational Development Corporation is 73-0750007.
Filing Stats: 702 words · 3 min read · ~2 pages · Grade level 11.9 · Accepted 2024-09-23 16:32:59
Key Financial Figures
- $38,250,000 — mplex per the executed Contract totaled $38,250,000 less buyer fees and closing costs. The
- $8.52 — ars, and the initial lease rate will be $8.52 per square foot, with 2.5% annual escal
Filing Documents
- edc20240923_8k.htm (8-K) — 24KB
- ex_726626.htm (EX-99.1) — 8KB
- 0001185185-24-000909.txt ( ) — 156KB
- educ-20240919.xsd (EX-101.SCH) — 3KB
- educ-20240919_lab.xml (EX-101.LAB) — 19KB
- educ-20240919_pre.xml (EX-101.PRE) — 11KB
- edc20240923_8k_htm.xml (XML) — 3KB
01 ENTRY INTO A MATERIAL AGREEMENT
ITEM 1.01 ENTRY INTO A MATERIAL AGREEMENT On September 19, 2024, Educational Development Corporation ("EDC", the "Company" or "Seller") executed a Commercial Real Estate Sale Contract ("Contract") with Partner Holdings ("Buyer") for the Company's headquarters and distribution warehouse located at 5400-5402 South 122 nd East Avenue, Tulsa, Oklahoma 74146 (the "Hilti Complex"). The agreed upon sale price of the Hilti Complex per the executed Contract totaled $38,250,000 less buyer fees and closing costs. The proceeds from the sale will be utilized to pay off the Term Loans and Revolving Loan outstanding in the Credit Agreement with the Company's Bank. At closing, EDC will assign the existing Hilti tenant lease to the Buyer. EDC will retain sublease rights to the Crusoe Energy System leased space and will execute a separate Triple-Net Lease (the "Lease") for the remaining approximate 218,000 square feet. The Contract does not include the excess land parcel, consisting of approximately 17 acres of undeveloped land adjacent to the Hilti Complex, which will remain under the ownership of EDC. The initial term of the new lease with Buyer will be for 15 years, and the initial lease rate will be $8.52 per square foot, with 2.5% annual escalations beginning in year two of the lease. The Lease will also include triple-net terms, where the Seller will be responsible for utilities, insurance, property taxes, and regular maintenance, excluding roof and structural maintenance, which will be the Buyer's responsibility. Additionally, the Seller will retain the rights to sublease, subject to buyer approval, any available unused space in the building during the lease term. The Lease will also encompass other standard terms that are customary in the local market. The foregoing descriptions are a summary of the material terms of the Contract and are not complete. These descriptions are qualified in all respects subject to the actual provisions of the sale Contract and Lease with the
01 FINANCIAL STATEMENTS AND EXHIBITS
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (d) EXHIBITS Exhibit Number Description 99.1 Press Release dated September 23, 2024 104 Cover Page Interactive Data File (formatted as Inline XBRL) SIGNATURE Pursuant to the requirements of the Exchange Act, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Educational Development Corporation By: /s/ Craig M. White Craig M. White President and Chief Executive Officer Date: September 23, 2024