Business
Rocky Mountain Chocolate Factory Enters Into New $6 Million Credit Facility
DURANGO, Colo., Oct. 04, 2024 (GLOBE NEWSWIRE) -- Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) (the “Company”, “we”, or “RMCF”), an international
About this update from Rocky Mountain Chocolate Factory, Inc.
[{"type":"text","content":"DURANGO, Colo., Oct. 04, 2024 (GLOBE NEWSWIRE) -- Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) (the “Company”, “we”, or “RMCF”), an international franchisor and producer of premium chocolates and other confectionery products, including gourmet caramel apples, has entered into a new three-year $6 million credit agreement with RMC Credit Facility, LLC, a special purposes investment entity affiliated with current RMCF board member Steve Craig. “This credit facility is a key component of our capital structure, enabling us to invest further in equipment and machinery while funding our growth initiatives,” stated Jeff Geygan, Interim CEO of RMCF. “With a strengthened balance sheet and improved liquidity, we are well-positioned to execute our three-year strategic plan and drive RMCF toward sustainable growth and profitability.” The credit facility provides for interest-only payments until the September 30, 2027 maturity date. Borrowings under the credit agreement will bear interest at 12% per annum. The Company used the proceeds to retire its existing $4 million revolving credit facility, of which $3.45 million was outstanding on September 30, 2024. The remaining balance from the new credit agreement will be used for continued capital investment and working capital needs. Additional details regarding the credit facility can be found on the Company’s Form 8-K to be filed with the Securities and Exchange Commission. Forward-Looking Statements This press release includes statements of our expectations, intentions, plans and beliefs that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to come within the safe harbor protection provided by those sections. These forward-looking statements involve various risks and uncertainties. The statements, other than statements of historical fact, included in this press release are forward-looking statements. Many of the forward-looking statements contained in this press release may be identified by the use of forward-looking words such as \"will,\" \"intend,\" \"believe,\" \"expect,\" \"anticipate,\" \"should,\" \"plan,\" \"estimate,\" \"potential,\" or similar expressions. However, the absence of these words or similar expressions does not mea...