RMCF receives waiver from Wells Fargo for current ratio covenant breach (1.42 vs 1.5)

Rocky Mountain Chocolate Factory, Inc.

As of Nov 30, 2023, company's current ratio was 1.42, below the required 1.5 in credit agreement with Wells Fargo.
On Jan 22, 2024, Wells Fargo issued a waiver of default rights for this specific breach, avoiding immediate repayment demand.
Waiver applies only to this instance; future noncompliance could trigger acceleration of $4M credit line.
Credit line is $4M secured by substantially all assets; lender retains right to cease advances if future breach.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Rocky Mountain Chocolate Factory, Inc. entered into Credit Agreement with Wells Fargo Bank N.A. valued at $4.0 million (effective 2021-10-13).

Action: entry
Agreement: credit facility
Counterparty: Wells Fargo Bank N.A.
Value: $4.0 million
Effective: 2021-10-13

Exact text from the filing

on October 13, 2021, Rocky Mountain Chocolate Factory, Inc. (the “Company”) entered into a credit agreement (as amended, the “Credit Agreement”) with Wells Fargo Bank N.A. (the “Lender”), pursuant to which the Company has a $4.0 million credit line for general corporate and working capital purposes (the “Credit Line”).

View on SEC.gov

269 material agreements filed in the last 30 days. Browse all material agreements →

Rocky Mountain Chocolate Factory, Inc. filing history →

Source: SEC EDGAR

accession 0001437749-24-002284

view filing index on sec.gov

view primary document

Machine-readable: JSON · Markdown · Plain text

This headline and bullets were generated automatically by deepseek-v4-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice. See methodology for how this pipeline works.