Rocky Mountain Chocolate Factory Announces Retirement of Board Member Franklin Crail

Rhea-AI Summary

Rocky Mountain Chocolate Factory (RMCF) announced the retirement of Co-Founder Franklin "Frank" Crail from its Board of Directors. Crail has been a pivotal figure in shaping RMCF into a global confectionary brand since its inception in 1982, serving as President and CEO until 2019. He will not seek re-election and will retire after a new independent director is appointed. The company expresses gratitude for Crail's leadership, emphasizing his commitment to employees and franchisees. RMCF operates over 300 stores internationally and remains focused on growth in the confectionery sector.

Positive

• Frank Crail's retirement opens opportunities for new leadership perspectives.
• Crail's legacy strengthens brand identity and trust among stakeholders.

Negative

• Concerns about continuity and experience gap in leadership after Crail's departure.

DURANGO, CO / ACCESSWIRE / August 9, 2021 / Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF) (the "Company"), a global confectionary manufacturer, international franchisor and retail operator delighting consumers through a premium offering of gourmet chocolate, confection and self-serve frozen yogurt, today announced the retirement of Franklin "Frank" Crail from the Company's Board of Directors.

As RMCF's Co-Founder, Mr. Crail has played a defining role in building the Company into the global confectionary leader that it is today. From 1982 through 2019, he served as RMCF's President and Chief Executive Officer and from 1986 through 2019 as Chairman of the Board. Mr. Crail will not be standing for re-election as a board director and will retire as a RMCF board director upon the Company appointment of a replacement independent board director.

"Frank's vision and leadership have been instrumental in the growth of the RMCF brand across the world and to the delight of millions of customers," said Rahul Mewawalla, Chairperson of the RMCF Board of Directors. "Frank has demonstrated a remarkable commitment to RMCF's employees, franchisees and customers and we are thankful for the legacy he has created. On behalf of RMCF, I want to express our deep gratitude to Frank. It has been a personal privilege and honor for me to know Frank and I know our entire RMCF organization joins me in wishing Frank the very best and our thanks for many years of inspirational leadership," added Mr. Mewawalla.

"Being a part of the creation of Rocky Mountain Chocolate Factory and watching it grow from our first store on Main Street in Durango to the international brand it is today has been the journey of a lifetime," said Mr. Crail. "It has been an honor and a privilege to serve this company for 40 years alongside such a tremendous group of talented people who make up our staff, our wonderful group of franchisees who have embodied our vision, and every shareholder who believes like us that great chocolate can make the world a sweeter place. My experience at Rocky Mountain Chocolate Factory will forever fill me with joy and, as a significant shareholder, I have full faith and confidence in the Board and leadership to lead the company through its next chapter of growth and success."

About Rocky Mountain Chocolate Factory, Inc.

Rocky Mountain Chocolate Factory, Inc., headquartered in Durango, Colorado, is an international franchiser of gourmet chocolate, confection and self-serve frozen yogurt stores and a manufacturer of an extensive line of premium chocolates and other confectionery products. The Company, its subsidiaries and its franchisees and licensees operate more than 300 Rocky Mountain Chocolate Factory and self-serve frozen yogurt stores across the United States, South Korea, Qatar, the Republic of Panama, and The Republic of the Philippines. The Company's common stock is listed on the Nasdaq Global Market under the symbol "RMCF."

Forward-Looking Statements

This press release includes statements of the Company's 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 nature of the Company's operations and the environment in which it operates subjects it to changing economic, competitive, regulatory and technological conditions, 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. Factors which could cause results to differ include, but are not limited to: the impact of the COVID-19 pandemic and global economic conditions on the Company's business, including, among other things, online sales, factory sales, retail sales and royalty and marketing fees, the Company's liquidity, the Company's cost cutting and capital preservation measures, achievement of the anticipated potential benefits of the strategic alliance with Edible Arrangements®, LLC and its affiliates ("Edible"), the ability to provide products to Edible under the strategic alliance, Edible's ability to increase the Company's online sales, changes in the confectionery business environment, seasonality, consumer interest in the Company's products, general economic conditions, the success of the Company's frozen yogurt business, receptiveness of the Company's products internationally, consumer and retail trends, costs and availability of raw materials, competition, the success of the Company's co-branding strategy, the success of international expansion efforts and the effect of government regulations. Government regulations which the Company and its franchisees and licensees either are, or may be, subject to and which could cause results to differ from forward-looking statements include, but are not limited to: local, state and federal laws regarding health, sanitation, safety, building and fire codes, franchising, licensing, employment, manufacturing, packaging and distribution of food products and motor carriers. For a detailed discussion of the risks and uncertainties that may cause the Company's actual results to differ from the forward-looking statements contained herein, please see the "Risk Factors" contained in Item 1A. of the Company's Annual Report on Form 10-K for the fiscal year ended February 28, 2021, as amended. Additional factors that might cause such differences include, but are not limited to: the length and severity of the current COVID-19 pandemic and its effect on among other things, factory sales, retail sales, royalty and marketing fees and operations, the effect of any governmental action or mandated employer-paid benefits in response to the COVID-19 pandemic, and the Company's ability to manage costs and reduce expenditures and the availability of additional financing if and when required. These forward-looking statements apply only as of the date hereof. As such they should not be unduly relied upon for more current circumstances. Except as required by law, the Company undertakes no obligation to release publicly any revisions to these forward-looking statements that might reflect events or circumstances occurring after the date of this press release or those that might reflect the occurrence of unanticipated events.

Important Additional Information and Where to Find It

The Company intends to file a proxy statement on Schedule 14A, an accompanying proxy card and other relevant documents with the Securities and Exchange Commission (the "SEC") in connection with such solicitation of proxies from RMCF stockholders for the Company's 2021 Annual Meeting of Stockholders. STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE COMPANY'S DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ALL OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and stockholders may obtain a copy of the definitive proxy statement, an accompanying proxy card, any amendments or supplements to the definitive proxy statement and other documents filed by the Company with the SEC at no charge at the SEC's website at www.sec.gov. Copies will also be available at no charge in the "SEC Filings" section of the of the Company's Investor Relations website at www.rmcf.com/Investor-Relations.aspx or by contacting the Company's Investor Relations department at (970) 375-5678, as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC.

Certain Information Regarding Participants to the Solicitation

The Company, its directors and certain of its executive officers are participants in the solicitation of proxies from stockholders in connection with matters to be considered at the Company's 2021 Annual Meeting of Stockholders. Information regarding the direct and indirect interests, by security holdings or otherwise, of the Company's directors and executive officers, in the Company is included in its Proxy Statement on Schedule 14A for its 2020 Annual Meeting of Stockholders, filed with the SEC on August 13, 2020, the Company's Annual Report on Form 10-K for the fiscal year ended February 28, 2021, filed with the SEC on June 1, 2021, as amended by Amendment No. 1 on Form 10-K/A filed with the SEC on June 28, 2021, and in the Company's Current Reports on Form 8-K filed with the SEC from time to time. Changes to the direct or indirect interests of the Company's directors and executive officers are set forth in SEC filings on Initial Statements of Beneficial Ownership on Form 3, Statements of Change in Ownership on Form 4 and Annual Statements of Changes in Beneficial Ownership on Form 5. These documents are available free of charge as described above. Updated information regarding the identities of potential participants and their direct or indirect interests, by security holdings or otherwise, in Company will be set forth in the Proxy Statement for the Company's 2021 Annual Meeting of Stockholders and other relevant documents to be filed with the SEC, if and when they become available.

Media Contacts:

Kendell Moore / Jake Yanulis
Abernathy MacGregor
amg-rmcf@abmac.com
(212) 371-5999

Investor Contact:

William P. Fiske
Georgeson LLC
(212) 440-9128

SOURCE: Rocky Mountain Chocolate Factory, Inc.

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FAQ

Who is Frank Crail and what role did he play at RMCF?

Frank Crail is the Co-Founder of Rocky Mountain Chocolate Factory, having served as President and CEO from 1982 to 2019, and as Chairman of the Board.

What impact does Frank Crail's retirement have on RMCF?

Crail's retirement may lead to leadership changes that could affect the company's strategic direction and operations.

When will Frank Crail officially retire from RMCF's Board?

Frank Crail will retire after the appointment of a replacement independent board director.

What has been the significance of Frank Crail's contributions to RMCF?

Crail's vision and leadership have been instrumental in RMCF's growth and global brand recognition over the last four decades.

What is the stock symbol for Rocky Mountain Chocolate Factory?

The stock symbol for Rocky Mountain Chocolate Factory is RMCF.