Business
Rocky Mountain Chocolate Factory, Inc. Provides Update on Strategic Alternatives Process and Board Composition
DURANGO, CO / ACCESSWIRE / November 11, 2019 / (NASDAQ:RMCF) - Rocky Mountain Chocolate Factory, Inc. (the "Company") today is providing an update to
About this update from Rocky Mountain Chocolate Factory, Inc.
[{"type":"text","content":"DURANGO, CO / ACCESSWIRE / November 11, 2019 / (NASDAQ:RMCF) - Rocky Mountain Chocolate Factory, Inc. (the \"Company\") today is providing an update to shareholders on its previously announced strategic alternatives process as well as its Board of Directors (the \"Board\") composition.\"The Board is fully focused on driving and maximizing shareholder value. We have conducted an exhaustive strategic review process, engaging with numerous potential acquirors and strategic partners,\" said Bryan Merryman, Chairman of the Board. \"The process has not yet yielded any actionable options for the Company. We remain open to all potential value-creating opportunities.\"Update on Strategic Alternatives ProcessOn May 29, 2019, the Company announced that its Board was conducting a process to explore and evaluate strategic alternatives to maximize shareholder value and position the Company for long-term success. As part of this process, the Company and its financial advisor, North Point Advisors, held discussions with numerous potential acquirors and strategic partners. However, given some of the recent headwinds faced by the Company, none of those discussions has resulted in alternatives that the Board believes would be in the best interest of shareholders.By way of background, in early March the Company received an unsolicited offer to acquire the Company for a premium to the then current market price. Based upon discussions with the potential acquiror and after consultation with our financial and legal advisors, the Board considered the offer to be credible and worth exploring to maximize value to shareholders. However, after a thorough due diligence process, the potential acquiror advised the Board that it was no longer interested in pursuing an acquisition of the Company. Based on the Board's prior analysis of the headwinds facing the Company, the Board determined that North Point Advisors should continue to evaluate the Company's strategic alternatives and engage in a broad process to identify an acquiror or strategic partner that would benefit all shareholders. As noted above, that process has not yet yielded an alternative that the Board believes would be in the best interest of shareholders.Update on Board CompositionThe Board has been actively engaged throughout this rigorous process and is continuing to evaluate an additional range...