Rocky Mountain Chocolate Factory - RMCF STOCK NEWS

Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) has announced a private investment in public equity (PIPE) financing expected to yield $2.2 million in gross proceeds. The company is selling 1.25 million shares of common stock at $1.75 per share, representing a 15% premium to the closing stock price on August 5, 2024. The financing is set to close around August 6, 2024, subject to customary conditions.

RMCF plans to use the net proceeds for working capital and general corporate purposes. The transaction involves unregistered securities and includes a registration rights agreement for future resale of the shares. This private placement aims to strengthen the company's financial position as an international franchisor and producer of premium chocolates and confectionery products.

Rocky Mountain Chocolate Factory (Nasdaq: RMCF) has appointed Carrie E. Cass as Chief Financial Officer, effective August 5, 2024. Cass brings extensive experience in financial management, manufacturing, and strategic leadership to RMCF. Her background includes roles as CEO at Ballantine Communications and CFO at Aeroscraft Jeff Geygan, Interim CEO of RMCF, highlighted Cass's expertise in manufacturing accounting and financial management as important for executing the company's updated three-year strategic plan. Cass, a certified public accountant, expressed enthusiasm about leading RMCF's finance organization and working towards sustainable growth and profitability.

Rocky Mountain Chocolate Factory (RMCF) reported its fiscal Q1 2025 results, highlighting a pivotal transition phase. Key points include:

- Total revenue remained flat at $6.4 million compared to the prior year
- Product and retail gross profit decreased to $(0.3) million from $0.3 million
- Loss from continuing operations increased to $1.6 million or $(0.26) per share
- The company is revamping its transformation plan with a focus on improving liquidity, returning retail store count to growth, and achieving three-year targets
- Investments of over $3 million in new equipment and production efficiencies
- Targets include achieving gross margins near historic averages and adjusted EBITDA close to breakeven by end of Fiscal 2025
- By Fiscal 2027, aims to exceed 30% gross margins and achieve 10-12% adjusted EBITDA margin

Rocky Mountain Chocolate Factory (RMCF) has scheduled its fiscal first quarter 2025 conference call for July 15, 2024, at 5:00 p.m. ET. The company, a leading international franchisor and producer of premium chocolates and confectionery products, will release its financial results prior to the call. The call will include a Q&A session with management. Investors are encouraged to submit questions ahead of time by emailing RMCF's investor relations team. The conference call will be accessible via live webcast and will be available for replay on the company's investor relations website.

Rocky Mountain Chocolate Factory (Nasdaq: RMCF) has appointed Charles B. Arnold to its Board of Directors and as Chair of the Audit Committee effective June 28, 2024. Arnold brings over 20 years of experience in corporate finance, having held C-suite and Board positions in both public and private companies. Notably, he served on the Board of National Security Group and has been the CFO of Abernathy Holdings since 2021. His extensive background includes ten years with Church’s Chicken and various roles in finance and accounting. Arnold replaces Brett Seabert, who resigned from the Board. The appointment aims to leverage Arnold’s expertise in public company operations and strategic finance initiatives to benefit RMCF.

Rocky Mountain Chocolate Factory (Nasdaq: RMCF) announced the separation of the CEO and Chair roles. Jeff Geygan, recently appointed Interim-CEO, yielded his position as Board Chair to Starlette B. Johnson in accordance with company policy. Geygan has served on the RMCF Board since August 2021 and as Chair from June 2022 to May 2024. Johnson, a director since March 2023, briefly served as Interim-CEO before Geygan's appointment. The company highlights the need for a full-time CEO at the Durango production facility. Additionally, RMCF has filed for an extension to issue their form 10-K following the CFO's resignation on May 7, 2024, and plans to file by June 13, 2024.