HOUSTON, Nov. 22, 2011 /PRNewswire/ -- Rick's Cabaret
International, Inc. (NASDAQ: RICK), the nation's leading group
of upscale gentlemen's clubs, has signed definitive documents to
acquire the Silver City Cabaret, a Dallas adult nightclub on Stemmons Freeway and
the underlying real estate that includes a building the
company plans to convert into an entertainment complex. The
transaction, which also includes the purchase of a separate piece
of property in Dallas that is
licensed for an adult business, is intended to close on or before
January 2, 2012.
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Said Eric Langan,
President and CEO of Rick's Cabaret: "We are very enthusiastic
about the potential to develop the Silver City location at 7501
North Stemmons Freeway near Love Field, which will become a great
entertainment and retail destination. Only 14,000 square feet of
the 54,000 square foot building is currently in use and we will
develop the rest to include a Tootsie's style Knockers Sports Bar
and an after hours nightclub. The Silver City Cabaret, after we
have rebranded it, will become an important part of the terrific
complex of clubs we have assembled in the Dallas-Ft. Worth
Metroplex."
The purchase will bring to nine the number of clubs the company
owns in the Dallas-Ft. Worth Metroplex and to 24 the number of
clubs nationwide.
Subsidiaries of Rick's Cabaret will pay current owners a total
of $12 million for the Silver City
property and a separate property just off the busy I-35 corridor
that includes a sexually oriented business license, which the
company intends to develop in the future. The aggregate payment
will be in the form of $1.5 million
in cash plus promissory notes in the total aggregate amount of
$10.5 million that are payable over
11 years at an adjustable interest rate of 5.5 percent.
Closing on the transaction is subject to due diligence and
transfer of appropriate licenses and permits, and other terms and
conditions customary for an acquisition of this type. Further
details of the proposed transaction are available in the Form 8-K
filed with the SEC, which is available at
www.ricksinvestor.com.
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, 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.
SOURCE Rick's Cabaret International, Inc.