Rocky Mountain Chocolate Factory Closes $2.2 Million Private Placement, Led by Strategic Investment from American Heritage Railways

Core Viewpoint - Rocky Mountain Chocolate Factory Inc. has successfully closed a PIPE financing deal, raising approximately $2.2 million to strengthen its balance sheet and support its strategic growth plans [1][3]. Financing Details - The company sold 1.25 million shares of common stock at a price of $1.75 per share, reflecting a 15% premium over the closing stock price on August 5, 2024 [2]. - The financing is led by American Heritage Railways, with participation from current RMCF board member Steve Craig [2]. Strategic Intent - The interim CEO stated that the funds will provide necessary working capital to advance the company's updated three-year strategic plan and return to sustainable growth and profitability [3]. - American Heritage Railways is recognized as a strategic shareholder, with a customer base that aligns well with RMCF's premium products [3]. Company Overview - Rocky Mountain Chocolate Factory is an international franchiser and producer of premium chocolates and confectionery products, operating over 260 stores in the U.S. and several international locations [7]. - The company was recognized as one of America's Best Retailers in 2023 by Newsweek in the chocolate and candy stores category [7].