NEW YORK CITY, July 11, 2013 /PRNewswire/ -- Rick's
Cabaret International, Inc. (NasdaqGM:RICK), the publicly
traded group of gentlemen's clubs, said today its subsidiary has
extended an option to purchase the property at 50 West
33rd St. until August
9th while it works out contractual details to
sell some of the air rights it is acquiring to a third party. The
subsidiary has an agreement in place to purchase the property,
which is the site of the company's flagship Rick's Cabaret/NYC
adult nightclub.
(Logo: http://photos.prnewswire.com/prnh/20110418/MM85342LOGO)
Eric Langan, President and
CEO of Rick's Cabaret International, Inc., said the subsidiary has
received an offer to purchase two-thirds of the air rights over the
building for $8 million.
The original contract for the subsidiary to purchase the
property was extended after the owner agreed to finance the
acquisition. The parties mutually agreed to the first extension at
no cost to the Rick's Cabaret subsidiary while the parties worked
to mitigate taxation issues. Subsequently, the subsidiary
paid an additional $92,708 to extend
the current term by 30 days.
Mr. Langan said the company will now enter into a modified
lease-purchase option so that the air rights can be transferred in
the most tax efficient method while still protecting the
subsidiary's rights under the original agreement with the
landlord.
"We are very pleased that we have received an offer for the air
rights, which would lower our acquisition costs," said Mr. Langan.
"The new structure would mean a savings of about $960,000 a year or $80,000 a month compared with the original
financing terms."
About Rick's Cabaret: Subsidiaries of Rick's Cabaret
International, Inc. (NASDAQ: RICK) own upscale adult nightclubs
serving primarily businessmen and professionals that offer live
entertainment, dining and bar operations. Nightclubs called "Rick's
Cabaret," "XTC Cabaret," "Club Onyx" and "Tootsie's Cabaret" and
other brand names are located in New York
City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities. Sexual
contact is not permitted at any locations. A subsidiary of Rick's
Cabaret also owns a media division, ED Publications. 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.
Twitter: @rickscabaret; Facebook:
http://www.facebook.com/rickscabaretintl.
Forward-looking Statements: This press release may
contain 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 press release,
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. 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.