HOUSTON, Nov. 5, 2019 /PRNewswire/ -- RCI Hospitality
Holdings, Inc. (NASDAQ: RICK) today announced subsidiaries have
signed definitive agreements to acquire the assets and related real
estate of a well-established, top gentlemen's club located in the
Northeast Corridor for $15.0
million.
Under the terms of the agreements, RCI subsidiaries will pay
$7.2 million for the club and
$7.8 million for the real estate
using $4.0 million in seller
financing at 6.0% for the club with the balance of cash from an
anticipated $11.0 million bank loan
at a blended rate of 6.25%.
RCI has agreed not to disclose the club's name and location
until closing, which is subject to transfer of all necessary
permits, licenses and other authorizations, and usual closing
conditions for transactions of this kind, including due
diligence.
The club, which has been in business close to 20 years, has a
full liquor license, is open seven days a week, and is located in a
top 10 metro and sports market that is also known for being a major
business, financial and convention center.
"This club fits perfectly with our goal of acquiring profitable
number one locations with a long history of cash flow," said
Eric Langan, President & CEO, of
RCI. "As a $2.4 million EBITDA club,
the 100% financed acquisition is clearly in line with our capital
allocation strategy in terms of valuation and cash on cash
return."
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With more than 40 units, RCI Hospitality Holdings, Inc., through
its subsidiaries, is the country's leading company in gentlemen's
clubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas/Ft.
Worth, Houston,
Miami, Minneapolis, St.
Louis, Charlotte, Pittsburgh, and other markets operate under
brand names, such as Rick's Cabaret, XTC, Club Onyx, Vivid Cabaret,
Jaguars, Tootsie's Cabaret, and Scarlett's Cabaret. Sports
bars/restaurants operate under the brand name Bombshells Restaurant
& Bar. Please visit http://www.rcihospitality.com
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, but not limited to, the risks and
uncertainties associated with (i) operating and managing an adult
business, (ii) the business climates in cities where it operates,
(iii) the success or lack thereof in launching and building the
company's businesses, (iv) cyber security, (v) conditions relevant
to real estate transactions, (vi) our ability to maintain
compliance with the filing requirements of the SEC and the Nasdaq
Stock Market, and (vii) numerous other factors such as laws
governing the operation of adult entertainment businesses,
competition and dependence on key personnel. The company has no
obligation to update or revise the forward-looking statements to
reflect the occurrence of future events or circumstances.
Media & Investor Contacts
Gary Fishman and Steven Anreder at 212-532-3232 or
gary.fishman@anreder.com and steven.anreder@anreder.com
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SOURCE RCI Hospitality Holdings, Inc.