Item 1.01 Entry Into a Material Definitive Agreement
On October 27, 2021 Rocky Mountain Chocolate Factory, Inc. ("the Company")
executed a Revolving Line of Credit Note with Wells Fargo Bank. This document
was executed to renew the existing $5 million line of credit and extend the
maturity date from September 30, 2021 to September 30, 2022. The line is
collateralized by substantially all of the Company's assets with the exception
of the Company's retail store assets. Draws may be made under the line at 50% of
eligible accounts receivable plus 50% of eligible inventories. Variable interest
on borrowings is at the Daily Simple SOFR rate plus 2.37% and is initially set
at 2.4%. The line of credit is subject to various financial ratio and leverage
covenants. The Loan Agreement also contains standard acceleration provisions in
the event of a default by the Company.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an
Off-Balance Sheet Arrangement of a Registrant
The information disclosed under Items 1.01 of the Current Report on Form 8-K is
incorporated herein by reference.
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