Rocky Mountain Chocolate Factory, Inc. has entered into a sale-leaseback agreement for its Durango, Colorado corporate headquarters and production facility for $6.6 million. The transaction is with American Heritage Legacies, LLC, a company controlled by the family of Interim CEO Allen Harper. The company will use the proceeds to repay $6.6 million in outstanding promissory notes.
Key Details
- Sale Details: The company agreed to sell its Durango property for $6.6 million, a price supported by an independent appraisal. The transaction is expected to close on or about October 15, 2026.
- Leaseback Terms: The company will lease the property back for an initial 10-year term with a 10-year renewal option. The first-year base rent is $624,000 and will increase by 2% annually.
- Use of Proceeds: Net proceeds will be used to repay $6.6 million of outstanding promissory notes held by entities affiliated with two board members. These notes carry a 12% annual interest rate.
- Related Party & Other Terms: The transaction was approved by disinterested board members. The lease includes a change of control provision requiring RMCF, at the landlord's option, to buy back the property for the greater of $6.93 million or its appraised value.