Rick’s Cabaret International, Inc. Signs Letter of Intent to Acquire Schiek’s Palace Royale Gentlemen’s Club in Minneap...
March 07 2011 - 9:03AM
Business Wire
Rick’s Cabaret International, Inc. (NASDAQ: RICK), the
nation’s leading group of upscale gentlemen’s clubs, said today it
has signed a letter of intent, subject to execution of definitive
documents, to acquire the Minneapolis gentlemen’s club currently
operating as Schiek’s Palace Royale for $3,050,000. In
addition a subsidiary of Rick’s Cabaret will pay $3,250,000 to
acquire the real estate where Schiek’s Palace Royale is
located.
When completed the acquisition from VCG Holding Corp.
(NASDAQ: VCGH) would bring to 23 the number of clubs in the Rick’s
Cabaret group nationwide and will be the company’s second club in
Minneapolis. Schiek’s Palace Royale is located at 115 South 4th
Street, around the corner from the existing Rick’s Cabaret in the
heart of downtown Minneapolis.
The letter of intent calls for signing of definitive documents
on March 15, 2011, with a closing five business days after all
licenses for an adult cabaret to serve liquor and conduct topless
entertainment have been satisfactorily issued to Rick’s
Cabaret.
Said Eric Langan, president and CEO of Rick’s Cabaret:
“This acquisition gives us a terrific package of gentlemen’s clubs
in the Minneapolis area. It is consistent with our program of
‘clustering’ clubs to increase management, marketing and purchasing
efficiencies. It is within our target for immediate accretion to
our earnings, and the venue fits our profile of upscale facilities
offering a premier entertainment experience.”
About Rick’s Cabaret: Rick’s Cabaret International, Inc.
(NASDAQ: RICK) is home to 22 upscale adult nightclubs serving
primarily businessmen and professionals that offer live
entertainment, dining and bar operations. Nightclubs in New York
City, Miami, Philadelphia, New Orleans, Charlotte, Dallas, Houston,
Minneapolis and other cities operate under the names "Rick's
Cabaret," "XTC," “Club Onyx” and “Tootsie’s Cabaret”. Sexual
contact is not permitted at these locations. Rick’s Cabaret also
operates a media division, ED Publications, and owns the adult
Internet membership Website couplestouch.com as well as a network
of online adult auction sites under the flagship URL
naughtybids.com. Rick’s Cabaret common stock is traded on NASDAQ
under the symbol RICK. For further information contact ir@ricks.com
or visit ricksinvestor.com.
Forward-looking Statements: This document contains
forward-looking statements that involve a number of risks and
uncertainties that could cause the company’s actual results to
differ materially from those indicated in this document, including
the risks and uncertainties associated with operating and managing
an adult business, the business climates in cities where it
operates, the success or lack thereof in launching and building the
company’s businesses, risks and uncertainties related to the
operational and financial results of our Web sites, conditions
relevant to real estate transactions, and numerous other factors
such as laws governing the operation of adult entertainment
businesses, competition and dependence on key personnel. Additional
factors that could cause the Company’s results to differ materially
from those described in the forward-looking statements are
described in forms filed with the SEC from time to time and
available at ricksinvestor.com or on the SEC's internet website at
www.sec.gov. Rick's has no obligation to update or revise the
forward-looking statements to reflect the occurrence of future
events or circumstances. For further information visit
ricksinvestor.com.
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