AB Value-Radoff Group Announces Acceptance of Latest Settlement Terms Proposed by Rocky Mountain Chocolate Factory

Rhea-AI Summary

AB Value Management LLC and Bradley L. Radoff, owning approximately 17.6% of Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF), announced their agreement to the company’s latest settlement terms. This includes the addition of their nominee to the Board of Directors, aiming for enhanced corporate governance and long-term value creation. They intend to finalize a cooperation agreement swiftly for the benefit of all stockholders. The group emphasizes their commitment to improving business practices while fostering a positive relationship with the company.

Positive

• Agreement on settlement terms enhances corporate governance.
• Nomination of a highly qualified director to the Board may improve management oversight.
• Intent to finalize cooperation agreement aims to create long-term value.

Negative

• Potential for conflict if new director does not align with current management's vision.

Looks Forward to Promptly Receiving a Standard Cooperation Agreement That Provides for the Addition of a New, Highly Qualified Director and Customary Terms

WESTFIELD, N.J.--(BUSINESS WIRE)-- AB Value Management LLC and Bradley L. Radoff (together with their affiliates, the "AB Value-Radoff Group" or "we"), who own approximately 17.6% of the outstanding shares of Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF) ("Rocky Mountain" or the "Company"), today issued the following statement:

“Earlier this week, our representative informed Rocky Mountain’s legal counsel that we agree to all of the Company’s latest publicly disclosed settlement terms. The framework we have agreed to provides for the addition of our nominee to the Board of Directors and other customary terms. By compromising with Rocky Mountain, we hope to facilitate improved corporate governance and enhanced value creation over the long-term. We intend to engage in good faith to expeditiously finalize a cooperation agreement that can benefit all of the Company’s stockholders.”

View source version on businesswire.com: https://www.businesswire.com/news/home/20220728006091/en/

Saratoga Proxy Consulting

John Ferguson / Joe Mills, 212-257-1311

info@saratogaproxy.com



Longacre Square Partners

Greg Marose / Bela Kirpalani, 646-386-0091

gmarose@longacresquare.com / bkirpalani@longacresquare.com

Source: AB Value Management LLC and Bradley L. Radoff

FAQ

What is the significance of AB Value Management's agreement with Rocky Mountain Chocolate Factory?

The agreement signifies a move towards improved corporate governance and the potential for enhanced value creation for shareholders.

Who will join the Board of Directors at Rocky Mountain Chocolate Factory?

A nominee from AB Value Management and Bradley L. Radoff will join the Board as part of the settlement agreement.

What percentage of shares does AB Value Management own in Rocky Mountain Chocolate Factory?

AB Value Management owns approximately 17.6% of the outstanding shares.

What is the goal of the cooperation agreement between AB Value Management and Rocky Mountain Chocolate Factory?

The goal is to finalize terms that benefit all stakeholders and enhance long-term value for shareholders.