Rocky Mountain Chocolate Factory Enters Into New $6 Million Credit Facility
Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) has secured a new $6 million credit facility with RMC Credit Facility, , an entity affiliated with board member Steve Craig. This three-year agreement replaces the company's existing $4 million revolving credit facility, of which $3.45 million was outstanding. The new facility features interest-only payments at 12% per annum until its maturity on September 30, 2027.
Interim CEO Jeff Geygan stated that this credit facility is important for RMCF's capital structure, enabling investments in equipment and machinery while funding growth initiatives. The remaining balance will be used for continued capital investment and working capital needs, positioning the company to execute its three-year strategic plan and drive towards sustainable growth and profitability.
Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) ha ottenuto una nuova linea di credito di 6 milioni di dollari con RMC Credit Facility, un'entità affiliata al membro del consiglio Steve Craig. Questo accordo triennale sostituisce la linea di credito revolving esistente di 4 milioni di dollari, di cui 3,45 milioni di dollari erano ancora da pagare. La nuova linea prevede pagamenti solo interessi al 12% annuo fino alla sua scadenza il 30 settembre 2027.
Il CEO ad interim Jeff Geygan ha dichiarato che questa linea di credito è importante per la struttura capitale di RMCF, consentendo investimenti in attrezzature e macchinari, mentre finanzia iniziative di crescita. Il saldo rimanente sarà utilizzato per continui investimenti in capitale e esigenze di capitale circolante, posizionando l'azienda per attuare il proprio piano strategico triennale e puntare verso una crescita sostenibile e redditizia.
Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) ha obtenido una nueva línea de crédito de 6 millones de dólares con RMC Credit Facility, una entidad afiliada al miembro de la junta Steve Craig. Este acuerdo de tres años reemplaza la línea de crédito revolving existente de 4 millones de dólares, de los cuales 3,45 millones de dólares estaban pendientes. La nueva línea presenta pagos solo de intereses al 12% anual hasta su vencimiento el 30 de septiembre de 2027.
El CEO interino Jeff Geygan declaró que esta línea de crédito es importante para la estructura de capital de RMCF, permitiendo inversiones en equipos y maquinaria mientras se financian iniciativas de crecimiento. El saldo restante se utilizará para inversiones de capital continuas y necesidades de capital de trabajo, posicionando a la empresa para ejecutar su plan estratégico a tres años y avanzar hacia un crecimiento sostenible y rentabilidad.
로키 마운틴 초콜릿 팩토리 Inc. (Nasdaq: RMCF)가 이사회 멤버인 스티브 크레이그(Steve Craig)와 관련된 RMC Credit Facility와 새로운 600만 달러 신용 시설을 획득했습니다. 이 3년 계약은 기존의 400만 달러 회전 신용 시설을 대체하며, 그 중 345만 달러가 미지급되었습니다. 새로운 시설은 연 12%의 이자만 지불하는 조건으로 2027년 9월 30일까지 유효합니다.
임시 CEO인 제프 게이건(Jeff Geygan)은 이 신용 시설이 RMCF의 자본 구조에 중요하며, 장비 및 기계에 대한 투자와 성장 이니셔티브를 지원하는 데 중대한 역할을 한다고 밝혔습니다. 나머지 잔액은 지속적인 자본 투자와 운영 자본 요구를 위해 사용될 것이며, 회사가 3년 전략 계획을 실행하고 지속 가능한 성장 및 수익성으로 나아가는 데 기여하고자 합니다.
Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) a sécurisé une nouvelle facilité de crédit de 6 millions de dollars avec RMC Credit Facility, une entité affiliée au membre du conseil Steve Craig. Cet accord de trois ans remplace la facilité de crédit revolving existante de 4 millions de dollars, dont 3,45 millions de dollars étaient encore dus. La nouvelle facilité propose des paiements d'intérêts uniquement à 12% par an jusqu'à son échéance le 30 septembre 2027.
Le PDG par intérim Jeff Geygan a déclaré que cette facilité de crédit est importante pour la structure du capital de RMCF, permettant des investissements dans des équipements et des machines tout en finançant des initiatives de croissance. Le solde restant sera utilisé pour des investissements en capital continus et des besoins en fonds de roulement, permettant à l'entreprise d'exécuter son plan stratégique triennal et de viser une croissance durable et une rentabilité.
Die Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) hat eine neue Kreditfazilität über 6 Millionen Dollar mit der RMC Credit Facility, einer mit dem Verwaltungsmitglied Steve Craig verbundenen Einrichtung, gesichert. Diese dreijährige Vereinbarung ersetzt die bestehende revolvierende Kreditfazilität über 4 Millionen Dollar, von denen 3,45 Millionen Dollar ausstanden. Die neue Fazilität sieht nur Zinszahlungen in Höhe von 12% pro Jahr bis zur Fälligkeit am 30. September 2027 vor.
Der Interims-CEO Jeff Geygan erklärte, dass diese Kreditfazilität für die Kapitalstruktur der RMCF wichtig ist, da sie Investitionen in Anlagen und Maschinen ermöglicht, während sie Wachstumsinitiativen finanziert. Der verbleibende Betrag wird für fortlaufende Investitionen und Betriebskapitalbedarfe verwendet, was das Unternehmen in die Lage versetzt, seinen drei-Jahres-Strategieplan umzusetzen und nachhaltiges Wachstum sowie Rentabilität anzustreben.
- Secured a larger $6 million credit facility, increasing available funds
- Interest-only payments until maturity, potentially improving short-term cash flow
- Strengthened balance sheet and improved liquidity
- Ability to invest in equipment, machinery, and growth initiatives
- Higher interest rate at 12% per annum compared to previous facility
- Increased debt load from $3.45 million to $6 million
Insights
Rocky Mountain Chocolate Factory's new
- Increased liquidity, with
$2.55 million in additional funds after retiring the existing$3.45 million debt. - Extended maturity to September 30, 2027, offering longer-term financial stability.
- Interest-only payments, which could improve short-term cash flow.
However, the
For a company with a market cap of just
DURANGO, Colo., Oct. 04, 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, has entered into a new three-year
“This credit facility is a key component of our capital structure, enabling us to invest further in equipment and machinery while funding our growth initiatives,” stated Jeff Geygan, Interim CEO of RMCF. “With a strengthened balance sheet and improved liquidity, we are well-positioned to execute our three-year strategic plan and drive RMCF toward sustainable growth and profitability.”
The credit facility provides for interest-only payments until the September 30, 2027 maturity date. Borrowings under the credit agreement will bear interest at
The Company used the proceeds to retire its existing
Additional details regarding the credit facility can be found on the Company’s Form 8-K to be filed with the Securities and Exchange Commission.
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 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. 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, statements regarding the execution of our strategic plan, and statements regarding future growth and profitability - 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 ranked in both the Franchise 500 by Entrepreneur Magazine and the Franchise 400 by Franchise Times for 2024. The Company is headquartered in Durango, Colorado. The Company and its franchisees and licensees 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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