Rocky Mountain Chocolate Factory Inc. has entered into a new three-year, $6 million credit agreement with RMC Credit Facility, LLC, a special purposes investment entity affiliated with current RMCF board member Steve Craig.

“This credit facility is a key component of our capital structure, enabling us to invest further in equipment and machinery while funding our growth initiatives,” states Jeff Geygan, interim CEO of RMCF. “With a strengthened balance sheet and improved liquidity, we are well-positioned to execute our three-year strategic plan and drive RMCF toward sustainable growth and profitability.

The credit facility provides for interest-only payments until the September 30, 2027 maturity date. Borrowings under the credit agreement will bear interest at 12% per annum.

The company used the proceeds to retire its existing $4 million revolving credit facility, of which $3.45 million was outstanding, on September 30. The remaining balance from the new credit agreement will be used for continued capital investment and working capital needs.

Additional details regarding the credit facility can be found on the Company’s Form 8-K to be filed with the Securities and Exchange Commission. filed with the Securities and Exchange Commission.

Related: Rocky Mountain Chocolate Factory snags $2.2M investment