Rick's Cabaret International, Inc. signs letter of intent to acquire Schiek's Palace Royale Gentlemen's Club in Minneapolis
– (March 7, 2011) – Rick’s Cabaret International, Inc
. (NASDAQ: RICK), the nation’s leading group of upscale gentlemen’s clubs, said today it has signed a letter of intent, subject to execution of definitive documents, to acquire the Minneapolis gentlemen’s club currently operating as Schiek’s Palace Royale
for $3,050,000. In addition a subsidiary of Rick’s Cabaret will pay $3,250,000 to acquire the real estate where Schiek’s Palace Royale is located.
When completed the acquisition from VCG Holding Corp.
(NASDAQ: VCGH) would bring to 23 the number of clubs in the Rick’s Cabaret group nationwide and will be the company’s second club in Minneapolis. Schiek’s Palace Royale is located at 115 South 4th
Street, around the corner from the existing Rick’s Cabaret in the heart of downtown Minneapolis.
The letter of intent calls for signing of definitive documents on March 15, 2011, with a closing five business days after all licenses for an adult cabaret to serve liquor and conduct topless entertainment have been satisfactorily issued to Rick’s Cabaret.
Said Eric Langan, president and CEO of Rick’s Cabaret: “This acquisition gives us a terrific package of gentlemen’s clubs in the Minneapolis area. It is consistent with our program of ‘clustering’ clubs to increase management, marketing and purchasing efficiencies. It is within our target for immediate accretion to our earnings, and the venue fits our profile of upscale facilities offering a premier entertainment experience.”
About Rick’s Cabaret: Rick’s Cabaret International, Inc. (NASDAQ: RICK) is home to 22 upscale adult nightclubs serving primarily businessmen and professionals that offer live entertainment, dining and bar operations. Nightclubs in New York City, Miami, Philadelphia, New Orleans, Charlotte, Dallas, Houston, Minneapolis and other cities operate 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 Website 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] or visit www.ricksinvestor.com.
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.Additional factors that could cause the Company’s results to differ materially from those described in the forward-looking statements are described in forms filed with the SEC from time to time and available at www.ricksinvestor.com or on the SEC"s internet website at www.sec.gov. 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.