Global Value Investment Corp. Comments on ISS Recommendations at Rocky Mountain Chocolate Factory
September 29 2021 - 3:00PM
Global Value Investment Corp. (“GVIC”), a value-oriented investment
research and advisory firm located in Milwaukee, Wisconsin, today
sent a letter to Institutional Shareholder Services, Inc. (“ISS”)
questioning its recent recommendations to shareholders of Rocky
Mountain Chocolate Factory, Inc. (“Rocky Mountain”) (NASDAQ: RMCF).
“In our opinion, the ISS report overlooks critical
considerations at Rocky Mountain, including the substantial change
that has been effected to date,” said GVIC portfolio manager JP
Geygan. “As holders of 8.1% of Rock Mountain’s common stock, GVIC
has a strong interest in the outcome of the upcoming annual
meeting. To us, the choice is clear: Rocky Mountain’s slate of
directors and operational plan are superior, and we intend to
support them.”
GVIC’s letter, which can be accessed by visiting this link,
raises the following points:
- Rocky Mountain has made, or has committed to making, meaningful
improvements in corporate governance, including board
refreshment.
- The operational plan presented by Rocky Mountain is thoughtful,
measured, and reasonable. GVIC agrees with ISS’s statement that
“the dissident has not disclosed a sufficiently detailed go-forward
plan to merit outright control of the board.”
- The dissident group has not identified a CEO candidate. GVIC is
deeply concerned that current members of senior management would
quickly exit if the dissident group’s nominees were elected. This
could impose substantial expense – in addition to significant
disruption – on Rocky Mountain at a critical time.
- Contrary to the dissident group’s claim, Rocky Mountain has
favorably resolved a dispute with its Canadian franchisee,
Immaculate Confection. Recent comments by Rocky Mountain suggest
that the board is open to a combination, which would provide an
avenue to quickly refresh Rocky Mountain’s branding, packaging, and
positioning.
- GVIC does not see a path to a combination with Immaculate
Confection if the dissident group prevails. This as an existential
threat to Rocky Mountain: Immaculate Confection presents an
immediate avenue to a refreshed and reinvigorated brand, but if its
relationship with Rocky Mountain sours, it could become a
formidable competitor.
- GVIC believes the election of the dissident group’s nominees to
the Board may result in a change of control, executive departures,
and business disruptions that could permanently impair the
franchise.
About Global Value Investment Corp.Global Value
Investment Corp. is a value-oriented investment research and
advisory firm focused on investing in the equity and debt of
publicly traded companies around the world. The firm was founded in
2007 in Milwaukee, WI.
For Further Information Contact:JP GeyganGlobal
Value Investment
Corp.262-478-0640Info@gvi-corp.comwww.gvi-corp.com
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