Rocky Mountain Chocolate Factory Announces $2.2 Million Private Placement
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 Inc. (Nasdaq: RMCF) ha annunciato un finanziamento di investimento privato in equity pubblica (PIPE) che si prevede possa generare 2,2 milioni di dollari in proventi lordi. L'azienda sta vendendo 1,25 milioni di azioni di azioni ordinarie a 1,75 dollari per azione, rappresentando un premio del 15% rispetto al prezzo di chiusura delle azioni del 5 agosto 2024. Il finanziamento dovrebbe chiudersi intorno al 6 agosto 2024, soggetto a condizioni consuete.
RMCF prevede di utilizzare i proventi netti per capitale circolante e scopi aziendali generali. La transazione implica titoli non registrati e include un accordo sui diritti di registrazione per la futura rivendita delle azioni. Questo collocamento privato mira a rafforzare la posizione finanziaria dell'azienda come franchisor internazionale e produttore di cioccolato di alta qualità e prodotti di confetteria.
Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) ha anunciado un financiamiento de inversión privada en capital público (PIPE) que se espera genere 2.2 millones de dólares en ingresos brutos. La empresa está vendiendo 1.25 millones de acciones ordinarias a 1.75 dólares por acción, lo que representa un prima del 15% respecto al precio de cierre de las acciones del 5 de agosto de 2024. Se espera que el financiamiento cierre alrededor del 6 de agosto de 2024, sujeto a condiciones habituales.
RMCF planea utilizar los ingresos netos para capital de trabajo y propósitos corporativos en general. La transacción involucra valores no registrados e incluye un acuerdo de derechos de registro para la futura reventa de las acciones. Esta colocación privada busca fortalecer la posición financiera de la empresa como franquiciador internacional y productor de chocolates de primera y productos de confitería.
록키 마운틴 초콜릿 팩토리 Inc. (Nasdaq: RMCF)는 상장기업의 사모투자(PIPE) 자금 조달을 발표하며 220만 달러의 총 수익을 기대하고 있습니다. 회사는 125만 주의 보통주를 주당 1.75달러에 판매하며, 이는 2024년 8월 5일 종가 대비 15%의 프리미엄을 의미합니다. 자금 조달은 2024년 8월 6일 경 마무리될 예정이며, 일반적인 조건에 따릅니다.
RMCF는 순 자금을 운영 자본 및 일반 기업 목적에 사용할 계획입니다. 이 거래는 미등록 증권을 포함하며, 향후 주식 재판매를 위한 등록 권리 계약이 포함되어 있습니다. 이 사모 배치는 회사의 재무 위치를 국제 프랜차이저 및 프리미엄 초콜릿 및 제과 제품 생산자로서 강화하는 것을 목표로 하고 있습니다.
Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) a annoncé un financement par investissement privé en capital public (PIPE) prévu pour générer 2,2 millions de dollars de produits bruts. L'entreprise vend 1,25 million d'actions ordinaires à 1,75 dollar par action, représentant une prime de 15% par rapport au prix de clôture de l'action du 5 août 2024. Le financement devrait se clôturer aux alentours du 6 août 2024, sous réserve de conditions habituelles.
RMCF prévoit d'utiliser les produits nets pour le fonds de roulement et des fins corporatives générales. La transaction concerne des titres non enregistrés et inclut un accord relatif aux droits d'enregistrement pour une revente future des actions. Ce placement privé vise à renforcer la position financière de la société en tant que franchiseur international et producteur de chocolats haut de gamme et de confiseries.
Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) hat eine Private Equity-Investition (PIPE) angekündigt, die voraussichtlich 2,2 Millionen US-Dollar an Bruttoerlösen einbringen wird. Das Unternehmen verkauft 1,25 Millionen Aktien zu einem Preis von 1,75 US-Dollar pro Aktie, was einem 15% Aufschlag auf den Schlusskurs vom 5. August 2024 entspricht. Die Finanzierung soll voraussichtlich am 6. August 2024 abgeschlossen werden, vorbehaltlich der üblichen Bedingungen.
RMCF plant, die Nettomittel für Betriebskapital und allgemeine Unternehmenszwecke zu verwenden. Die Transaktion umfasst nicht registrierte Wertpapiere und beinhaltet eine Registrierungspflicht für den zukünftigen Verkauf der Aktien. Diese Privatplatzierung zielt darauf ab, die finanzielle Position des Unternehmens als internationaler Franchisegeber und Hersteller von hochwertigen Schokoladen- und Zuckerwaren zu stärken.
- Raised $2.2 million in gross proceeds through PIPE financing
- Shares sold at a 15% premium to the previous closing price
- Strengthens working capital position
- Potential dilution of existing shareholders due to issuance of 1.25 million new shares
Rocky Mountain Chocolate Factory's
The dilution impact is minimal, with only 1.25 million new shares being issued. This financing provides a short-term liquidity boost but doesn't address long-term growth concerns. Investors should monitor how RMCF utilizes these funds to improve its operational efficiency and market position in the competitive confectionery industry.
This PIPE deal reflects the challenging market conditions for small-cap companies like RMCF. The premium pricing is a positive sign, but the need for private placement suggests access to traditional capital markets. The confectionery industry faces headwinds from changing consumer preferences towards healthier options.
RMCF's focus on premium chocolates and gourmet products could be a differentiating factor. However, the company needs to demonstrate how this capital infusion will translate into tangible growth initiatives and market share gains. Investors should look for upcoming strategic announcements that could leverage this new funding to address market trends and expand RMCF's footprint.
DURANGO, Colo., Aug. 06, 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, today announced that it has entered into a securities purchase agreement for a private investment in public equity ("PIPE") financing that is expected to result in gross proceeds of approximately
Pursuant to the terms of the securities purchase agreement, RMCF is selling an aggregate of 1.25 million shares of its common stock at a price of
The Company intends to use the net proceeds for working capital and general corporate purposes.
The offer and sale of the foregoing securities are being made in a transaction not involving a public offering and the securities have not been registered under the Securities Act of 1933, as amended, and may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements. Concurrently with the execution of the securities purchase agreement, RMCF and the investors entered into a registration rights agreement pursuant to which the Company has agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the shares of common stock sold in the PIPE financing.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
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 document 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 mean that a statement is not forward-looking. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future - including statements expressing general views about future operating results - are forward-looking statements. Management of the Company believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause our Company’s actual results to differ materially from historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to: inflationary impacts, changes in the confectionery business environment, seasonality, consumer interest in our products, receptiveness of our products internationally, consumer and retail trends, costs and availability of raw materials, competition, the success of our co-branding strategy, the success of international expansion efforts and the effect of government regulations. For a detailed discussion of the risks and uncertainties that may cause our actual results to differ from the forward-looking statements contained herein, please see the section entitled “Risk Factors” contained in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, each filed with the Securities and Exchange Commission.
About Rocky Mountain Chocolate Factory, Inc.
Rocky Mountain Chocolate Factory, Inc. is an international franchiser of premium chocolate and confection stores, and a producer of an extensive line of premium chocolates and other confectionery products, including gourmet caramel apples. Rocky Mountain Chocolate Factory was named one of America’s Best on Newsweek's list of "America's Best Retailers 2023" in the chocolate and candy stores category. The Company is headquartered in Durango, Colorado. Its subsidiaries, franchisees and licensees currently operate over 260 Rocky Mountain Chocolate stores across the United States, with several international locations. The Company's common stock is listed on the Nasdaq Global Market under the symbol "RMCF."
Investor Contact
Sean Mansouri, CFA
Elevate IR
720-330-2829
RMCF@elevate-ir.com
FAQ
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