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GlobeNewswire·

Rocky Mountain Chocolate Factory Announces $6.6 Million Sale-Leaseback of Durango Property

  • Rocky Mountain Chocolate Factory signed a $6.6 million sale-leaseback agreement for its Durango, Colorado property with American Heritage Legacies, LLC.
  • The transaction is a related party deal because the buyer is controlled by the family of Interim CEO Allen Harper.
  • Net proceeds will be used to repay an existing $6.6 million promissory note accruing 12% annual interest.
  • The lease includes a 10-year initial term with an option to renew for another 10 years.
  • First-year annual rent is set at $624,000, representing 9.45% of the purchase price, with a 2% annual increase thereafter.
  • The company will continue using the facility as its corporate headquarters, production site, & warehouse.
  • The Audit Committee & disinterested board members approved the deal, with Mr. Harper recusing himself from the review process.
  • An independent appraisal supported the $6.6 million purchase price.
  • The company operates approximately 250 locations globally & is listed on Nasdaq under the symbol RMCF.