Durango, Colorado 81303
Dear Fellow Stockholder:
Rocky Mountain Chocolate Factory Inc.’s (“RMCF”) 2022 Annual Meeting of Stockholders is scheduled to be held on August 18. Your vote on the WHITE proxy card is particularly important this year since your Board’s and management team’s efforts to turn around RMCF and restore stockholder value are threatened by yet another costly and distracting proxy fight by the AB Value and Bradley Radoff group (“AB Value”).
RMCF’s business, under the direction of a refreshed Board and a new hard-charging CEO, is now stronger than it was pre-COVID 19. Our franchisees weathered the storm quite well and most are posting stronger sales levels than pre-COVID. Inflationary and supply chain pressures, which have adversely impacted many consumer facing businesses, have been minimal, offset by sustained consumer purchases, targeted price increases, and a captive and efficient supply and distribution network.
Yet, for the third time in four years, AB Value is waging another costly, disruptive proxy fight by nominating two director candidates for election at this year’s annual meeting, despite the fact that two of our six director nominees on the WHITE proxy card were previously nominated by AB Value. The election of their two new nominees would not just disrupt our program to turn around RMCF, but would give AB Value representation on our Board far disproportionate to their stock ownership and far, far more than any other stockholder.
Please support your Board’s efforts to turn around RMCF and deliver superior value for the benefit of all stockholders by signing, dating, and returning the enclosed WHITE proxy card with a vote FOR the election of all our nominees and FOR the other proposals.
OUR NEW CEO, ROB SARLLS, UNDER THE DIRECTION OF OUR REFRESHED BOARD, IS MOVING AHEAD ON A DETAILED PLAN TO DELIVER SUPERIOR VALUE FOR THE BENEFIT OF ALL STOCKHOLDERS.
As we have previously written to you, our Board nominees have the right balance of skillsets, experience, and fresh perspectives to work effectively with newly appointed CEO Rob Sarlls to finish building and executing a long-term strategic plan that benefits all stockholders and to maintain accountability over Mr. Sarlls and the rest of the management team.
