RICK'S CABARET INTERNATIONAL RENEGOTIATES TERMS OF FINAL PUT OPTIONS
RICK’S CABARET INTERNATIONAL RENEGOTIATES TERMS OF FINAL PUT OPTIONS
HOUSTON -- (May 12, 2009) – Rick’s Cabaret International, Inc., the premier operator of upscale gentlemen’s clubs, has renegotiated the terms of put options granted in the acquisition of a nightclub in Dallas, Texas. The new terms are the final pieces in a program under which the company has extended payment terms related to several of its recent acquisitions.
Under the renegotiated terms of a Lock-Up/Leak-Out agreement the sellers of The Executive Club will now have the right to put a maximum of 3,000 shares per month to Rick’s Cabaret for 12 months at $25 per share, rather than the original maximum of 5,000 per month.
The renegotiation of terms for the Dallas club defers $600,000 of potential put payments into future years.
About Rick’s Cabaret: Rick’s Cabaret International, Inc. (NASDAQ: RICK) operates upscale adult nightclubs serving primarily businessmen and professionals that offer live adult entertainment, restaurant and bar operations. The company owns, operates or licenses adult nightclubs in New York City, Miami, Philadelphia, New Orleans, Charlotte, Dallas, Houston, Minneapolis and other cities 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 Web site, 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 [email protected].
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. 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.ricks.com
Contact: Allan Priaulx, 212-338-0050, [email protected]