Rick’s Cabaret International, Inc. Subsidiary Signs Asset Purchase Agreement to Purchase Schiek’s Palace Royale Gentlemen...
March 23 2011 - 12:00PM
Business Wire
A subsidiary of Rick’s Cabaret International, Inc.
(NASDAQ: RICK), the nation’s leading group of upscale gentlemen’s
clubs, has signed an asset purchase agreement 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
associated with the club at South 4th Street in downtown
Minneapolis.
Closings on the transactions are expected within five days of
issuance of licenses needed to operate an adult cabaret at the club
currently owned by VCG Holding Corp. (NASDAQ: VCGH). The
closings are subject to issuance of operating permits and other
documents customary for acquisitions of this type,
The acquisition will bring to 23 the number of clubs in the
Rick’s Cabaret group nationwide Additionally, the company has
signed a definitive agreement to acquire a club in
Indianapolis.
Eric Langan, president and CEO of Rick’s Cabaret: said:
“When we complete this transaction we will have two fine
gentlemen’s clubs in the vibrant Minneapolis market, giving us
great efficiencies in management, marketing and purchasing. The
price of the club is well within our range for accretive
acquisitions. We have several branding options for the club, which
we will announce after the deal has closed.”
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 www.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 www.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
www.ricksinvestor.com.
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