Rocky Mountain Chocolate Factory Announces $6.6 Million Sale-Leaseback of Durango Property
Key Highlights
- ➤$6.6 million sale-leaseback signed for Rocky Mountain Chocolate Factory’s Durango property
- ➤$6.6 million proceeds expected to repay promissory note bearing 12% annual interest
- ➤Annual rent starts at $624,000 and increases 2% annually under the lease
- ➤10-year lease secured, with an option to renew for an additional 10 years
- ➤Related-party transaction involves entity controlled by Interim CEO Allen Harper’s family
Expert Statements
Mel Keating, Chairman of the Board of Directors, Rocky Mountain Chocolate Factory
“We are focused on making thoughtful financial decisions that strengthen Rocky Mountain Chocolate Factory and create a more sustainable foundation for the business.”
Mel Keating, Chairman of the Board of Directors, Rocky Mountain Chocolate Factory
“This transaction allows us to significantly reduce our existing debt while securing our continued operations at the Durango facility under a long-term lease.”
DURANGO, Colo., Oct. 06, 2026 (GLOBE NEWSWIRE) -- Rocky Mountain Chocolate Factory, Inc. (Nasdaq: RMCF) (the “Company” or “RMCF”), America’s Chocolatier(®) since 1981, today announced it has signed a $6.6 million sale-leaseback agreement with American Heritage Legacies, LLC, involving its Durango, Colorado property. American Heritage Legacies, LLC, is a local company controlled by the family of Allen Harper, the Company’s Interim Chief Executive Officer. As such, the sale-leaseback transaction constitutes a “related party transaction” for the Company.
The Company expects to use the net proceeds from the transaction to repay its existing $6.6 million promissory note, which accrues interest at a rate of 12% per annum. The lease has an initial term of 10 years, with an option to renew for an additional 10 years. Annual rent will be $624,000 during the first year, representing 9.45% of the $6.6 million purchase price, and will increase by 2% annually. The lease will allow the Company to continue using the Durango facility as its corporate headquarters and production and warehouse facility.
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