JANEL CORPORATION (OTCMKTS:JANL) Files An 8-K Entry into a Material Definitive Agreement

On February 4, 2020, Indco, Inc. (“Indco”), a majority-owned subsidiary of Janel Corporation (the “Company”), entered into a Purchase and Sale Agreement with 4040 Earnings Way, LLC (“Seller”) to acquire from Seller the land and building which serves as the Indco office and manufacturing facility in New Albany, Indiana, for a purchase price of $845,000. Indco anticipates that the purchase price will be financed with cash from operations and a loan of up to $700,000 from First Merchants Bank secured by the subject property. Closing is expected to occur in April 2020.

On March 4, 2020, the Company and its wholly-owned subsidiaries, entered into the Third Amendment to Loan and Security Agreement (the “Amendment”) to the Loan and Security Agreement, dated October 17, 2017 by and between the Company, certain of its subsidiaries, and Santander Bank, N.A., as amended (the “Loan Agreement”). to, and among other changes effected by, the Amendment: (1) the Maturity date of the Loan evidenced by the Loan Agreement was extended to October 17, 2022; (2) the LIBOR rate margin was reduced from 2.50% to 2.25%; (3) the Collateral Monitor Fee was reduced from $1,000 per month to $500 per month; (4) the definition of EBITDA was revised to allow addback of up to $500,000 annually for merger and acquisition costs; and (5) the Company’s subsidiaries were permitted to pay up to $500,000 in aggregate dividends to the Company for fiscal 2020 if certain conditions were met.

About JANEL CORPORATION (OTCMKTS:JANL)

Janel Corporation, formerly Janel World Trade Ltd., is a holding company. The Company, through its subsidiaries, provides logistics services for importers and exporters across the world. It serves industries, such as heavy machinery/project cargo, electronics, household items, textiles, personal effects, and food and perishable items. The Company operates through full service cargo transportation logistics management segment. Its air services include airport to airport/door to door or combination, load consolidation, global air charter service, special handling-heavy lift, oversized cargo, complete documentation services, customs clearance and load tracking, and ocean services include full container load, less-than-container load, non-containerized load, project cargo, port to port/door to door or combination, complete documentation services, customs clearance and load tracking. In addition, the Company provides customs brokerage services.