Rocky Mountain Chocolate Factory (RMCF) has released an update to notify the public and investors about an entry into a material definitive agreement.
Rocky Mountain Chocolate Factory, Inc. has a $4.0 million credit line with Wells Fargo Bank, secured by most of the company’s assets, and includes financial covenants such as maintaining a certain current asset to liability ratio. The company failed to meet this ratio as of November 30, 2023, but the lender waived the default on January 22, 2024, with the understanding that future noncompliance could result in different actions. This waiver pertains only to the mentioned instance of noncompliance.
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