Rick's Cabaret International, Inc. Completes Private Placement Of 672,000 Shares Of Restricted Stock For Proceeds Of $13.4 Million
HOUSTON - (June 9, 2008) - Rick's Cabaret International,
, premier operator of upscale gentlemen's clubs, announced today that it has completed a private placement of 672,000 restricted shares of its common stock to institutional investors at a price of $20 per share, raising gross proceeds of $13,440,000.
The funds will be used for acquisitions.
Rick's Cabaret currently has signed agreements to purchase the Scores adult nightclub in Las Vegas and the Platinum II nightclub in Dallas.
"We are pleased that we have
continued our access to capital despite current financial market conditions," said Eric Langan, President and CEO of Rick's Cabaret. "This is our fourth consecutive private equity transaction, each at a share price higher than the previous. Our ability to raise funds allows us to execute our strategic acquisition program in a way that is accretive to our shareholders and also demonstrates to sellers of clubs that we complete the transactions we negotiate."
Cabaret International, Inc. (NASDAQ: RICK) operates upscale
nightclubs serving primarily businessmen and professionals that
offer live adult entertainment, restaurant and bar operations. The company
owns and operates or licenses adult nightclubs in New York City, New Orleans,
Charlotte, Houston, Minneapolis and other cities under the names "Rick's
Cabaret," "XTC" and "Club Onyx." No sexual contact
is permitted at any of these
locations. Rick's Cabaret also owns the adult
Web site, couplestouch.com,
and a network of online adult auction sites under the flagship URL naughtybids.com.
Cabaret common stock is traded on NASDAQ under the symbol RICK.
further information contact [email protected].
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 New York City and elsewhere;
the success or lack thereof in launching and building the company's businesses
in New York City and elsewhere;
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
of same-store sales; hire and train additional nightclub
and integrate new nightclubs into its operations; unexpected
increases in costs 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; the impact of any negative publicity or
public attitudes; competitive pressure from other national and regional
nightclub chains; 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.
no obligation to update or revise the forward-looking statements
reflect the occurrence of future events or circumstances. For further
information go to www.ricks.com.
Media Contact: Allan Priaulx, 212-338-0050, [email protected]