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Jaclyn, Inc.: Jaclyn, Inc. Announces Revised Agreement for Sale of Former Office and Warehouse Facility

^{Published on 2009-07-23 10:00:16, Last Modified on 2009-07-23 10:00:29 - Market Wire}
 

MAYWOOD, NJ--(Marketwire - July 23, 2009) - Jaclyn, Inc. (OTCQX: [ JCLY ]) today announced that it had entered into a revised purchase and sale agreement with the proposed purchaser of its former executive office and warehouse facility, plus additional lots, located in West New York, New Jersey. Under the revised agreement, the properties will be purchased for an aggregate purchase price of $7.1 million, $150,000 of which has been paid as a deposit, and $3.875 million of which will be paid in cash at closing. The remaining $3.075 million is payable by delivery of a two-year promissory note of the proposed purchaser, which will bear interest at a rate of 6.5% per annum. The promissory note will be guaranteed by the proposed purchaser's owner, and will be secured by a first mortgage on certain portions of the properties, and by a second mortgage on the remaining portions of the properties. The second mortgage will be subject and subordinate to a first mortgage securing acquisition and construction financings.

The proposed purchaser has received preliminary approval, subject to final approval, for its anticipated use of the properties from the West New York, New Jersey Zoning Board of Adjustment. Final approval, and the requisite publication of that approval, is expected in the near future, although there can be no assurance that final approval will be obtained. A closing of the transaction will be scheduled by the parties in accordance with the terms of the agreement after all approvals have been obtained.

The Company again noted that since the completion of any sale of the property is subject to a number of conditions and deliveries, there is no assurance that sale of the property will be concluded.

Forward Looking Statements

Note: This press release contains information concerning, among other things, our future plans and objectives that are or may be deemed to be forward-looking statements. However, forward-looking statements are subject to a number of known and unknown risks and uncertainties that may cause our actual results, trends, performance or achievements, or industry trends and results, to differ materially from the future results, trends, performance or achievements expressed or implied by such forward-looking statements. Those risks and uncertainties may include, but are not limited to, general economic and business conditions (including the ongoing financial downturn and disruptions in credit markets); competition; potential changes in customer spending; acceptance of our product offerings and designs; the variability of consumer spending resulting from changes in domestic economic activity; a highly promotional retail environment; any significant variations between actual amounts and the amounts estimated for those matters identified as our critical accounting estimates as well as other significant accounting estimates made in the preparation of our financial statements; and the impact of current and potential hostilities in the Middle East and in other geographic areas; as well as other geopolitical concerns. You are urged to consider all such factors. In light of the uncertainty inherent in such forward-looking statements, you should not consider their inclusion to be a representation that such forward-looking matters will be achieved. We assume no obligation for updating any such forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements.

Jaclyn, Inc. is a designer, manufacturer and marketer of apparel, women's sleepwear, infants' and children's apparel, handbags, premiums and related accessories. Our web site is at [ www.jaclyninc.com ].