Rocky Mountain Chocolate Factory signs $6.6 million sale-leaseback of Durango property with related party AHL

Rocky Mountain Chocolate Factory, Inc.

Rocky Mountain Chocolate Factory will sell its Durango, Colorado property to American Heritage Legacies, LLC for $6.6 million; an independent appraisal supported the price.
The company will use net proceeds to repay $6.6 million of promissory notes accruing 12% interest, held by entities affiliated with directors Steven L. Craig and Jeffrey R. Geygan.
The lease begins at closing with a 10-year term, $624,000 first-year annual rent, 2% annual increases, and an option to renew for another 10 years.
A change of control triggers lease termination and, at AHL's option, a buyback for the greater of $6.93 million or appraised value.
The deal is a related party transaction because AHL is controlled by the family of Interim CEO Allen Harper; the Audit Committee and disinterested directors approved it.

This headline and bullets were generated automatically by deepseek-v4.1-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice. See methodology for how this pipeline works.