SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D and is filing this schedule because of 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. [ ]
NOTE: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See 240,13d-7(b) for other parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 (Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
CUSIP No. 87669Q-10-1 Page 2 of 8
(1) Name of Reporting Person and IRS Identification No. of Above Person:
Rick's Cabaret International, Inc., a Texas Corporation
76- 0037324
(2) Check the Appropriate Box if a Member of a Group (See Instructions).
(a) [ ]
(b) [ ]
(3) SEC Use Only
(4) Source of Funds (See Instructions)
OO
(5) Check if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e). [ ]
(6) Citizenship or Place of Organization
Texas Corporation
Number (7) Sole Voting Power
of 4,034,071
Shares
Bene-
ficially (8) Shared Voting Power
Owned -0-
by
Each
Report- (9) Sole Dispositive Power
ing 4,034,071
Person
With:
(10) Shared Dispositive Power
-0-
(11) Aggregate Amount Owned by Each Reporting Person
4,034,071
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CUSIP No. 87669Q-10-1 Page 3 of 8
(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [ ]
(13) Percent of Class Represented by Amount if Row (11)
93.7%
(14) Type of Reporting Person
CO
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CUSIP No. 87669Q-10-1 Page 4 of 8
ITEM 1 Security and Issuer
This statement is filed with respect to shares of common stock par value
$0.001 (the "Shares") of Taurus Entertainment Companies, Inc. ("Taurus", the
"Company" or the "Issuer"), whose address is 3113 Bering Drive, Houston, Texas
77057.
ITEM 2. Identity and Background
1. A.
Name: Rick's Cabaret International, Inc. ("Rick's")
Place of organization: A Texas corporation
Principal Business: Adult Entertainment
Principal Business Address: 3113 Bering Drive, Houston, Texas
77057
Principal Office Address: 3113 Bering Drive, Houston, Texas 77057
(d) No.
(e) No.
1. B.
(a) Robert L. Watters.
(b) Business address: 3113 Bering Drive, Houston, Texas 77057
(c) Director, Chairman of the Board and President of Rick's, which
is in the adult entertainment business, whose business address is 3113 Bering
Drive, Houston, Texas 77057.
(d) No.
(e) No.
(f) USA
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CUSIP No. 87669Q-10-1 Page 5 of 8
1. C.
(a) Erich Norton White
(b) Business address: 3113 Bering Drive, Houston, Texas 77057
(c) Director, Secretary and Vice-President of Rick's, which is in
the adult entertainment business, whose business address is 3113 Bering Drive,
Houston, Texas 77057.
(d) No.
(e) No.
(f) USA
1. D.
(a) Scott C. Mitchell
(b) Business address: 820 Gessner, Suite 1380, Houston, Texas
77024
(c) Mr. Mitchell, a Director of Rick's, is a certified public
accountant and a stockholder of Mitchell & Cavallo, P.C., whose business address
is 820 Gessner, Suite 1380, Houston, Texas 77024.
(d) No.
(e) No.
(f) USA
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CUSIP No. 87669Q-10-1 Page 6 of 8
1. E.
(a) Martin Sage
(b) Business address: 1714-A Nantucket, Houston, Texas 77057
(c) Mr. Sage, a Director of Rick's, is the founder and director of
Sage Productions, Inc., which is involved in the development of applying
advanced learning theory to business, whose business address is 1714-A
Nantucket, Houston Texas, 77057.
(d) No.
(e) No.
(f) USA
1. F.
(a) Eric Langan.
(b) Business address: 3113 Bering Drive, Houston, Texas 77057.
(c) Director and Vice-president-Operations of Rick's, and Director
and President of Taurus, both of which are adult entertainment business, both of
whose business address is 3113 Bering Drive, Houston, Texas 77057.
(d) No.
(e) No.
(f) USA
ITEM 3. Source and Amount of Funds or Other Consideration.
On August 11, 1998, Rick's and certain shareholders (the "Shareholders") of
Taurus entered into a Stock Exchange Agreement (the "Agreement") which provided
for the acquisition by Rick's of a total of 4,034,071 shares of Taurus (the
"Shares"). Pursuant to the terms of the Agreement, Rick's issued a total of
1,152,587 to the Shareholders.
ITEM 4. Purpose of Transaction.
Rick's made this acquisition of the Company's securities as an investment
in an industry in which Rick's currently has its own operations.
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CUSIP No. 87669Q-10-1 Page 7 of 8 (a) Rick's and its directors have no plans or proposals to acquire additional securities of the Company. However, at a later date, Rick's may develop plans or proposals to acquire additional securities of the Company. (b) Rick's and its directors have no plans or proposals for an extraordinary corporate transaction involving the Company. However, at a later date, Rick's may develop plans or proposal for an extraordinary corporate transaction with the Company. (c) Rick's and its directors have no plans or proposals involving the sale or transfer of a material amount of assets of the Company or any of its subsidiaries. However, at a later date, Rick's may develop plans or proposals for the sale or transfer of a material amount of assets of the Company or any of its subsidiaries. (d) Upon the completion of the Agreement, Robert L. Watters was appointed as a director of Taurus and four then existing directors of Taurus resigned. Rick's and its directors have no plans to fill the existing vacancies on the board. However, at a later date, Rick's may develop plans or proposals for the changes in the present board of directors or management of the Company, or plans or proposals to change the number or term of directors or to fill any existing vacancies on the board. (e) Rick's and its directors have no plans or proposals for material change in the present capitalization or dividend policy of the Company. However, at a later date, Rick's may develop plans or proposals for change in the present capitalization or dividend policy of the Company. (f) Rick's and its directors have no plans or proposals for material change in the Company's business or corporate structure. However, at a later date, Rick's may develop plans or proposals for material change in the Company's business or corporate structure. (g) Rick's and its directors have no plans or proposals for changes in the Company's charter or bylaws, or instruments corresponding thereto or other actions which may impede the acquisition of control of the Company by any person. (h) Rick's and its directors have no plans or proposals for causing a class of securities of the Company to be delisted from a national securities exchange or to cease to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association. However, at a later date, Rick's may develop plans or proposals for causing a class of securities of the Company to be delisted from a national securities exchange or to cease to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association. (i) Rick's and its directors have no plans or proposals for a class of securities of the Company becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Act. However, at a later date, Rick's may develop plans or proposals for a class of securities of the Company becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Act. |
CUSIP No. 87669Q-10-1 Page 8 of 8
(j) Rick's and its directors have no plans or proposals for any actions
similar to those enumerated above. However, at a later date, Rick's may develop
plans or proposals for actions similar to those enumerated above.
ITEM 5. Interest in Securities of the Issuer.
(a) Rick's is the beneficial owner of 4,034,071 Shares of the Company,
which is 93.7% of the class of securities. The following persons named in Item 2
are not beneficial owners of any Shares of the Company: Robert L. Watters,
Erich Norton White, Scott Mitchell, Martin Sage and Eric Langan.
(b) Rick's has sole voting and dispositive power for all of the
4,034,071 Shares of the Company.
The following persons named in Item 2 do not have sole or shared voting or
dispositive power for any of the Shares of the Company: Robert L. Watters,
Erich Norton White, Scott Mitchell, Martin Sage and Eric Langan.
(c) None.
(d) None.
(e) Not applicable.
ITEM 6. Contract, Agreements, Understandings or Relationships with Respect
to Securities of the Issuer.
None
ITEM 7. Material to be Filed as Exhibits.
Exhibit 1.1 Form of Stock Exchange Agreement.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete, and
correct.
August 17, 1998 Rick's Cabaret International, Inc.
-----------------
Date By /s/ Robert L. Watters
-------------------
its President
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EXHIBIT 1.1
THIS STOCK EXCHANGE AGREEMENT (the "Agreement"), dated as of _____________, 1998, is by and among RICK'S CABARET INTERNATIONAL, INC., a Texas corporation ("Rick's"), and each of the persons or entities whose names appear and who are identified as stockholders on the signature page hereof (individually, a "STOCKHOLDER" and collectively the "STOCKHOLDERS"), such persons or entities being registered holders of capital stock of Taurus Entertainment Companies, Inc., a Colorado corporation ("Taurus").
WHEREAS, each Stockholder is the record and beneficial owner of the number of shares of common stock, $.001 par value of Taurus indicated in the table set forth as Exhibit A to this Agreement (which shares are hereinafter collectively referred to as the "Taurus Stock");
WHEREAS, Rick's desires to acquire from the Stockholders, and the Stockholders desire to convey to Rick's, all of the issued and outstanding Taurus Stock owned by the Stockholders in exchange for shares of voting common stock, $0.01 par value of Rick's (the "Rick's Stock"), all on the terms and conditions set forth below;
NOW, THEREFORE, in consideration of the premises, the mutual covenants and agreements and the respective representations and warranties herein contained in this Agreement, and on the terms and subject to the conditions set forth in this Agreement, the parties hereto, intending to be legally bound, hereby agree as follows:
ARTICLE I
EXCHANGE OF SHARES
ARTICLE II
THE CLOSING
The Closing of the transactions contemplated by this Agreement (the "Closing") shall take place at 4:00 p.m. on ______________, 1998 (the "Closing Date"), at the offices of Axelrod, Smith & Kirshbaum, 5300 Memorial Drive, Suite 700, Houston, Texas 77007 or at such other time and place as agreed upon among the parties hereto.
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDERS
Each of the Stockholders hereby severally represents and warrants to Rick's as follows:
Additionally, the Stockholder understands that any sale by the Stockholder
of any of the Rick's Stock received under this Agreement will, under current
law, require either (a) the registration of the Rick's Stock under the Act and
applicable state securities acts; (b) compliance with Rule 144 of the Act; or
(c) the availability of an exemption from the registration requirements of the
Act and applicable state securities acts. The Stockholder understands that
Rick's has not undertaken and does not presently intend to file a Registration
Statement to register the Rick's Stock to be issued to the Stockholder. The
Stockholder hereby agrees to execute, deliver, furnish or otherwise provide to
Rick's an opinion of counsel reasonably acceptable to Rick's prior to any
subsequent transfer of the Rick's Stock, that such transfer will not violate the
registration requirements of the federal or state securities acts. The
Stockholder further agrees to execute, deliver, furnish or otherwise provide to
Rick's any documents or instruments as may be reasonably necessary or desirable
in order to evidence and record the Rick's Stock acquired hereby.
To assist in implementing the above provisions, the Stockholder hereby consents to the placement of the legend, or a substantially similar legend, set forth below, on all certificates representing ownership of the Rick's Stock acquired hereby until the Rick's Stock has been sold, transferred, or otherwise disposed of, pursuant to the requirements hereof. The legend shall read substantially as follows:
"THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES ACTS. THESE SECURITIES MUST BE ACQUIRED FOR INVESTMENT, ARE RESTRICTED AS TO TRANSFERABILITY, AND MAY NOT BE SOLD, , HYPOTHECATED, OR OTHERWISE TRANSFERRED WITHOUT COMPLIANCE WITH THE REGISTRATION AND QUALIFICATION PROVISIONS OF APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR APPLICABLE EXEMPTIONS THEREFROM."
In addition, each Stockholder consents to Rick's placing a "stop transfer notation" in its corporate records concerning the transfer of the Rick's Stock acquired by each Stockholder.
If any action is brought against Rick's in respect of which indemnity may be sought against the Stockholder pursuant to the foregoing paragraph, Rick's shall promptly notify the Stockholder in writing of the institution of such action (but the omission to so notify the Stockholder shall not relieve it from any liability that it may have to Rick's except to the extent the Stockholder is materially prejudiced or otherwise forfeit substantive rights or defenses by reason of such failure), and the Stockholder shall assume the defense of such action, including the employment of counsel to be chosen by the Stockholder to be reasonably satisfactory to Rick's, and payment of expenses. Rick's shall have the right to employ the Stockholder's or their own counsel in any such case, but the fees and expenses of such counsel shall be at Rick's expense, unless the employment of such counsel shall have been authorized in writing by the Stockholder in connection with the defense of such action, or the Stockholder shall not have employed counsel to take charge of the defense of such action, or counsel employed by the Stockholder shall not be diligently defending such action, or Rick's shall have reasonably concluded that there may be defenses available to it which are different from or additional to those available to the Stockholder, or that representation of Rick's by the same counsel would be inappropriate under applicable standards of professional conduct due to actual or potential differing interests between them (in which case the Stockholder shall not have the right to direct the defense of such action on behalf of Rick's), in any of which event such fees and expenses shall be borne by the Stockholder. Anything in this paragraph to the contrary notwithstanding, the Stockholder shall not be liable for any settlement of, or any expenses incurred with respect to, any such claim or action effected without the Stockholder's written consent, which consent shall not be unreasonably withheld. The Stockholder shall not, without the prior written consent of Rick's effect any settlement of any proceeding in respect of which Rick's is a party and indemnity has been sought hereunder unless such settlement includes an unconditional release of Rick's from all liability on claims that are the subject matter of such proceeding.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF ERIC LANGAN
In addition to the representations and warranties of the Stockholders as set forth in Article III herein, Eric Langan ("Langan"), one of the Stockholders, as an officer and director of Taurus, additionally represents and warrants to Rick's as follows:
If any action is brought against Rick's in respect of which indemnity may be sought against Langan pursuant to the foregoing paragraph, Rick's shall promptly notify Langan in writing of the institution of such action (but the omission to so notify Langan shall not relieve it from any liability that it may have to Rick's except to the extent Langan is materially prejudiced or otherwise forfeit substantive rights or defenses by reason of such failure), and Langan shall assume the defense of such action, including the employment of counsel to be chosen by Langan to be reasonably satisfactory to Rick's, and payment of expenses. Rick's shall have the right to employ Langan's or their own counsel in any such case, but the fees and expenses of such counsel shall be at Rick's expense, unless the employment of such counsel shall have been authorized in writing by Langan in connection with the defense of such action, or Langan shall not have employed counsel to take charge of the defense of such action, or counsel employed by Langan shall not be diligently defending such action, or Rick's shall have reasonably concluded that there may be defenses available to it which are different from or additional to those available to Langan, or that representation of Rick's by the same counsel would be inappropriate under applicable standards of professional conduct due to actual or potential differing interests between them (in which case Langan shall not have the right to direct the defense of such action on behalf of Rick's), in any of which event such fees and expenses shall be borne by Langan. Anything in this paragraph to the contrary notwithstanding, Langan shall not be liable for any settlement of, or any expenses incurred with respect to, any such claim or action effected without Langan's written consent, which consent shall not be unreasonably withheld. Langan shall not, without the prior written consent of Rick's effect any settlement of any proceeding in respect of which Rick's is a party and indemnity has been sought hereunder unless such settlement includes an unconditional release of Rick's from all liability on claims that are the subject matter of such proceeding.
ARTICLE V
REPRESENTATIONS AND WARRANTIES OF RICK'S
Rick's hereby represents and warrant to the Stockholders as follows:
If any action is brought against Rick's, the Stockholders (collectively the "Indemnified Parties") in respect of which indemnity may be sought against Rick's pursuant to the foregoing paragraph, the Indemnified Parties shall promptly notify Rick's in writing of the institution of such action (but the omission to so notify Rick's shall not relieve it from any liability that it may have to such Indemnified Parties except to the extent Rick's is materially prejudiced or otherwise forfeits substantive rights or defenses by reason of such failure), and Rick's shall assume the defense of such action, including the employment of counsel to be chosen by Rick's to be reasonably satisfactory to the Indemnified Parties, and payment of expenses. The Indemnified Parties shall have the right to employ Rick's or their own counsel in any such case, but the fees and expenses of such counsel shall be at the Indemnified Party's expense, unless the employment of such counsel shall have been authorized in writing by Rick's in connection with the defense of such action, or Rick's shall not have employed counsel to take charge of the defense of such action, or counsel employed by Rick's shall not be diligently defending such action, or the Indemnified Parties shall have reasonably concluded that there may be defenses available to it which are different from or additional to those available to Rick's, or that representation of such Indemnified Party and Rick's by the same counsel would be inappropriate under applicable standards of professional conduct due to actual or potential differing interests between them (in which case Rick's shall not have the right to direct the defense of such action on behalf of the Indemnified Parties), in any of which event such fees and expenses shall been borne by Rick's. Anything in this paragraph to the contrary notwithstanding, Rick's shall not be liable for any settlement of, or any expenses incurred with respect to, any such claim or action effected without Rick's written consent, which consent shall not be unreasonably withheld. Rick's shall not, without the prior written consent of the Indemnified Parties effect any settlement of any proceeding in respect of which any Indemnified Parties is a party and indemnity has been sought hereunder unless such settlement includes an unconditional release of such Indemnified Parties from all liability on claims that are the subject matter of such proceeding.
ARTICLE VI
CLOSING; DELIVERY
(i) The Stockholders shall have delivered certificates evidencing their Taurus Common Stock duly endorsed for transfer by the Stockholders to Rick's as contemplated by this Agreement, in form and substance satisfactory to counsel for Ricks.
(ii) The Stockholders shall have executed and delivered to Ricks the Subscription Agreement as contemplated by Section 3.7 hereof.
(i) Rick's shall have delivered either (i) certificates evidencing Rick's Common Stock, duly executed for issuance by Rick's to the Stockholders as contemplated by this Agreement or (ii) letter of instructions from a duly authorized officer of Rick's to American Securities Transfer, Inc. (Rick's's transfer agent), instructing the transfer agent to duly issue stock certificates evidencing the shares of Common Stock of Rick's to the Stockholders, all as contemplated by this Agreement, in form and substance satisfactory to counsel for the Stockholders.
(ii) Ricks shall agree to undertake to file with the Nasdaq Stock Market, Inc., within 10 days of Closing, a Listing for Additional Shares which will list the Ricks Stock to be issued to the Stockholders at Closing.
(i) The Board of Directors of Ricks shall have approved and authorized
the transactions contemplated herein.
(ii) No action, suit or proceeding by or before any court or any
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governmental or regulatory authority shall have been commenced or threatened, and no investigation by any governmental or regulatory authority shall have been commenced or threatened, seeking to restrain, prevent or challenge the transactions contemplated hereby or seeking judgments against Rick's or the Stockholders.
ARTICLE VII
MISCELLANEOUS
(a) If to Rick's:
Rick's Cabaret International, Inc.
Mr. Robert L. Watters 3113 Bering Drive Houston, Texas 77057 Fax: (713) 785-0444 With a copy to: Robert D. Axelrod Axelrod, Smith & Kirshbaum 5300 Memorial Drive, Suite 700 Houston, Texas 77007 Fax: (713) 552-0202 |
(b) If to the Stockholders, to:
The addresses listed on Exhibit A, attached hereto.
With a copy to:
Thomas Pritchard
Brewer & Pritchard
Texas Heritage Building
1111 Bagby, 24th Floor
Houston, Texas 77002
Fax: (713) 659-2430
All notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; three days after being deposited in the mail, postage prepaid, sent certified mail, return receipt requested, if mailed; and the next day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery.
If a notice or communication is mailed in the manner provided above within the time prescribed, it is duly given, whether or not the addressee receives it.
IN WITNESS WHEREOF, the parties hereto have executed or caused this Agreement to be executed effective as of the day and year first above written.
RICK'S CABARET INTERNATIONAL, INC.
By:__________________________________
Robert L. Watters, President
STOCKHOLDER(S):
Address:_____________________________
STOCKHOLDER(S):
Address:_____________________________