Tulsa, Oklahoma--(Newsfile Corp. - November 1, 2021) - Educational Development Corporation (NASDAQ: EDUC) ("EDC", or the "Company") today announced that the Company has executed a Letter of Intent to purchase Learning Wrap-Ups, Inc.
"We are pleased to acquire Learning Wrap-Ups and have their leadership team, Ron and Rich Stuart, join our EDC family. The supplemental products of Learning Wrap-Ups were initially created over 35 years ago and we have sold these high-quality educational tools through our UBAM division for over 25 years. Learning Wrap-Ups products, including the Learning Palette product line, have a long sales history and continue to appeal year after year to pre-school and school-aged children. This makes them a natural fit into our current Usborne and Kane Miller product lines, which offer titles that continue to stand the test of time," said Craig White, President and Chief Executive Officer of EDC.
"We have worked with EDC and the White family for almost three decades and are excited to be part of the company. EDC has a long history of providing quality learning products to both schools and homes. We are confident that the unique sales and distribution methods utilized by EDC will increase the sales of Wrap-Up products significantly," said Ron Stuart, owner of Learning Wrap-Ups.
Mr. White concluded, "Learning Wrap-Ups has annual sales of approximately $1.5 million and the purchase price, resembling the value of the net assets acquired, will not materially impact the Company's financials. We expect to increase the overall sales of Learning Wrap-Up products through EDC's existing Publishing and UBAM sales channels while also capitalizing on improved margins by owning Learning Wrap-Ups exclusively."
About Educational Development Corporation (EDC)
EDC is a publishing company specializing in books for children. EDC is the exclusive United States trade co-publisher of the line of educational children's books produced in the United Kingdom by Usborne Publishing Limited ("Usborne") and we also exclusively publish books through our ownership of Kane Miller Book Publisher ("Kane Miller"); both international award-winning publishers of children's books. EDC's current catalog contains almost 2,000 titles, with new additions semi-annually. Both Usborne and Kane Miller products are sold via 4,000 retail outlets and by independent consultants, who hold book showings either online or in homes, book fairs with school and public libraries, direct and internet sales.
About Learning Wrap-Ups, Inc. (LWU)
Learning Wrap-Ups publishes a variety of supplemental learning materials for math, vocabulary, and science and all products include unique self-correction features. The Company's most popular products include Learning Wrap-Ups and Learning Palette. The company was founded in 1983 and is owned by brothers Ron and Rich Stuart.
Contact:
Educational Development Corporation
Craig White, (918) 622-4522
Investor Relations:
Three Part Advisors, LLC
Steven Hooser, (214) 872-2710
Cautionary Statement for the Purpose of the "Safe Harbor" Provision of the Private Securities Litigation Reform Act of 1995.
The information discussed in this Press Release includes "forward-looking statements." These forward-looking statements are identified by their use of terms and phrases such as "may," "expect," "estimate," "project," "plan," "believe," "intend," "achievable," "anticipate," "continue," "potential," "should," "could," and similar terms and phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties and we can give no assurance that such expectations or assumptions will be achieved. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, our success in recruiting and retaining new consultants, our ability to locate and procure desired books, our ability to ship the volume of orders that are received without creating backlogs, our ability to obtain adequate financing for working capital and capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, the COVID-19 pandemic, as well as those factors discussed in our Annual Report on Form 10-K for the year ended February 28, 2021, all of which are difficult to predict. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph and elsewhere in our Annual Report on Form 10-K for the year ended February 28, 2021 and speak only as of the date of this Press Release. Other than as required under the securities laws, we do not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise.
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