UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 30, 2010
Rocky Mountain Chocolate Factory, Inc.
(Exact name of registrant as specified in is charter)
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| Colorado
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0-14749
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84-0910696 |
| (State or other jurisdiction
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(Commission
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(IRS Employer |
| of incorporation)
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File Number)
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Identification No.) |
265 Turner Drive
Durango, Colorado 81303
(Address, including zip code, of principal executive offices)
Registrant’s telephone number, including area code: (970) 259-0554
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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| Item 1.01 |
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Entry Into a Material Definitive Agreement |
On July 30, 2010 Rocky Mountain Chocolate Factory, Inc. (“the Company”) executed a Promissory
Note, Commercial Security Agreement and Business Loan Agreement dated July 31, 2010 with Wells
Fargo Bank. These documents were executed to renew the existing $5 million line of credit and
extend the maturity date from July 2010 to July 2011. 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 75% of eligible accounts receivable plus 50% of eligible inventories.
Interest on borrowings is at prime less 50 basis points, however, at no time will the rate be below
5.00% per annum. Terms of the line require that the line be rested (that is, that there be no
outstanding balance) for a period of 30 consecutive days during the term of the loan. Additionally,
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.
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| Item 2.03 |
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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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