Rocky Mountain Chocolate Factory announces CEO transition, separation of chairperson and CEO role, and intent to add new board member

Mr. Merryman to remain as CEO until a replacement is named and is expected to remain on the Board.

DURANGO, Colorado (July 21, 2021) -- Rocky Mountain Chocolate Factory, Inc. (Nasdaq: RMCF) (the “Company”), which franchises gourmet chocolate and confection stores and manufactures premium chocolates and other confectionery products, today announced a continued commitment to accelerate corporate governance and leadership changes in response to discussions with it shareholders and as the Company continues its efforts to navigate out of the pandemic.

With the recent appointment of Rahul Mewawalla, an independent director, to the Board in June 2021 and other Board refreshment over the last two years, the Board further commits to additional Board refreshment by replacing one of the Board’s current, legacy members with a new, independent director with experience and expertise to further assist the Company with executing its long-term strategy, at or before the Company’s 2021 annual meeting. These and prior changes will result in a refreshment of a majority of the Board over the last two years, all of whom are independent.

The Board is also committed to separating the roles of Chairperson of the Board and Chief Executive Officer (CEO) of the Company. The Board believes that separating the roles and appointing an independent director as Chairperson of the Board will further enhance the Company’s corporate governance structure.

Additionally, in connection with the separation of the Chairperson and CEO roles, the Board has begun the process to engage an executive search firm to assist in identifying a new CEO for the Company. It is expected that Mr. Merryman will continue in an executive role with the Company following the appointment of a new CEO.

The Board will announce further information on these efforts in the coming weeks.