VCG Holding Corp. Announces Purchase of Additional St. Louis Night Club
January 19 2007 - 9:15AM
Business Wire
VCG Holding Corp. (VCG) (AMEX: PTT), a nationwide owner/operator of
adult nightclubs, announced today that it signed an agreement to
acquire ownership interest of an adult night club in St. Louis. VCG
Holding Corp. (VCG) announced today that it entered into an
agreement to purchase the general partnership interest and a
majority of the limited partnership interest in RCC LP located in
East St. Louis, Illinois. VCG will purchase the general partnership
interest (1%) from Illinois Acquisitions, Inc. (IAI) for 50,000
shares of restricted common stock. IAI is wholly owned by VCG�s CEO
and Chairman Troy H. Lowrie. The purchase of a 61% limited
partnership interest is for $800,000 in cash from Lowrie Management
LLLP (controlled by Mr. Lowrie). The agreement contains other terms
and provisions which are customary for the purchase agreement of a
partnership interest from related parties and the final price and
terms are subject to the completion of independent appraisal of
value, fairness opinion, the board of director review of final
documents, and the transfer of the liquor license being completed.
It is anticipated the transaction will be completed and effective
by February 28, 2007. �This purchase adds another club in the St.
Louis area as we already own Platinum of Illinois, Inc., and
continues the process of our purchasing the clubs owned and
controlled by our CEO and Chairman Troy H. Lowrie,� stated Mr.
Donald W. Prosser, Chief Financial Officer of VCG. The effect of
this acquisition and its future financial results were included in
the Earnings Guidance for 2007, 2008, and 2009 press release
January 10, 2007. About VCG Holding Corp. VCG Holding Corp. is an
owner, operator and consolidator of adult nightclubs throughout the
United States. The Company currently owns seven adult nightclubs,
one upscale dance lounge and operates five other adult nightclubs
under management agreements. The owned and managed clubs are
located in Indianapolis, St. Louis, Denver, Colorado Springs, and
Louisville. Forward-Looking Statements Statements contained in this
press release concerning future results, performance or
expectations are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. These
statements include statements regarding the intent, belief or
current expectations of the Company and members of its management
team, as well as assumptions on which such statements are based.
All forward-looking statements in this press release are based upon
information available to the Company on the date of this press
release. Forward-looking statements involve a number of risks and
uncertainties, and other factors, that could cause actual results,
performance or developments to differ materially from those
expressed or implied by those forward-looking statements including
the following: failure of facts to conform to necessary management
estimates and assumptions; the Company�s ability to identify and
secure suitable locations for new nightclubs on acceptable terms,
open the anticipated number of new nightclubs on time and within
budget, achieve anticipated rates of same-store sales, hire and
train additional nightclub personnel and integrate new nightclubs
into its operations; the continued implementation of the Company�s
business discipline over a large nightclub base; unexpected
increases in cost of sales or employee, pre-opening or other
expenses; the economic conditions in the new markets into which the
Company expands and possible uncertainties in the customer base in
these areas; fluctuations in quarterly operating results;
seasonality; changes in customer spending patterns; the impact of
any negative publicity or public attitudes; competitive pressures
from other national and regional nightclub chains; business
conditions, such as inflation or a recession, or other negative
effect on nightclub patterns, or some other negative effect on the
economy, in general, including (without limitation) growth in the
nightclub industry and the general economy; changes in monetary and
fiscal policies, laws and regulations; war, insurrection and/or
terrorist attacks on United States soil; and other risks identified
from time to time in the Company�s SEC reports, including the
Annual Report on Form 10-KSB for 2005, Quarterly Reports on Form
10-QSB and Current Reports on Form 8-K, registration statements,
press releases and other communications. The Company undertakes no
obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events
or changes to future operating results over time.
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