Despite Rocky Mountain Chocolate Factory reporting notable losses in revenue, one of the company’s largest shareholders said he still has faith in its long-term success – even as he offloads some of his own shares.
RMCF’s fiscal Q4 earnings report reflected a loss of $3.4 million overall, a loss of 38 cents per share and a 23.6% year-over-year revenue decline.
Meanwhile, Al Harper and American Heritage Railways – two of the company’s interconnected, reigning shareholders – sold nearly 190,000 shares over about three months, reducing the investor group’s stake from 13% in 2024 to around 8.7% by May.
According to a recent schedule 13D filed by American Heritage Railways, Harper has sole control over 1,911 personal shares in addition to shared control over 810,459 shares owned by American Heritage Railways, meaning even after the sales, the investor group still acts as a significant shareholder with more than 800,000 shares owned.
Most stocks sold between February and May went for around $2.60 per share.
According to the filing, the sales were made for portfolio management and investment reasons.
American Heritage Railways bought 1 million shares in 2024 for about $1.75 million, while several sitting RMCF board members at the time – including Harper – purchased a total of 250,000 shares for about $430,000 total.
Harper, who also served on the RMCF board in 2024, told The Durango Herald in February that despite seeing the company as being in the midst of an “uphill battle” economically and logistically – and foreseeing a turnaround being a long-term commitment – he had faith in RMCF’s outlook with Interim CEO Jeff Geygan at the helm.
The shares were bought for $1.75 per share in 2024. Harper sold his shares at about $2.60 per share.
When speaking to the Herald Tuesday, Harper said the filing was a required structural action due to his large stake in the company, and framed the sales as a prudent business move made to take advantage of a temporary stock price rise, rather than an attempt to distance himself from involvement with RMCF.
“There’s no rush for us to sell stock – it’s just a normal course of business,” he said. “If … we can turn some of it at a profit, we will, but we’re not just (here) to unload our stock.”
Harper and his son originally hoped to buy the company, he said, but turned to investing in stocks instead after discovering the cost was out of reach.
He still has faith in RMCF and wants to support its continued existence in Durango, he said.
“The (company) was in deep, and so I know they’ve raised some money and borrowed some money … (but) I don’t think it’s in any sense a sinking ship like it was when we first got involved trying to save it,” he said. “… We still love the company. … We still believe in the company.”
Geygan told the Herald in January that he was confident enough in his ability to see a return on his RMCF stocks to not pursue a pay raise.
“I’m happy to work for the $390,000 (per year interim salary) – I don’t care, because I own 20% of the stock,” he said. “The payday for me is if I can drive the stock from two bucks to 20 bucks. … And I’m willing to bet on myself here. So, I haven’t pressed the issue with the board.”
Geygan did not immediately respond to request for comment Tuesday.
Stock prices haven’t seen any marked improvement since Geygan’s tenure began.
Stock has averaged roughly $2.16 per share since May 2024, with a high of $3.58 May 3, 2024, and a low of $1.13 April 7, 2025. The stock closed at $1.55 Tuesday.
Some positives were also reflected in the company’s Q4 earnings report alongside its challenges. RMCF achieved its highest gross margin mix in over two years, and stock prices saw a small 1.6% increase in the open market.
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