November 27, 2000 05:04am
Rick's Cabaret International Completes Acquisition of Third Premier Gentleman's Club in Houston
Source: Rick's Cabaret International Inc.
by: Company Press Release
(HOUSTON, TX) -- Rick's Cabaret International Inc. (Nasdaq:RICK - news) today announced it has completed the acquisition of the Chesapeake Bay Cabaret, an upscale gentlemen's club located just minutes from the NASA Space Center and Houston's Hobby Airport.
The transaction was completed once all licenses and permits had been granted and issued to Rick's. Rick's management had been operating the club under an agreement signed in May which granted Rick's the right to manage the business until the completion of the acquisition.
Eric Langan, president and CEO, stated, ``although we have been managing the club since May, we now own the assets and have title to the business. We are extremely pleased that we have been able to operate the new location at a profit during the latest fiscal quarter and anticipate continued earnings from this location.''
Mr. Langan added, ``With the completion of the acquisition of the new location on Houston's south side, we will be able to greater leverage our advertising dollars as well as allow for more cost efficient utilization of management given its proximity to our two other premier Houston locations.''
The purchase price called for the issuance of 160,000 restricted shares of Rick's common stock to WMF Investments Inc. and a 10-year lease agreement between Rick's and WMF Investments. The lease grants Rick's an additional 10-year option for the property and the building.
Rick's Cabaret International Inc. opened its first ``Rick's Cabaret'' in Houston in 1983 and went public with its IPO in 1995, making Rick's the world's first publicly traded topless entertainment business. Rick's owns and operates premier adult entertainment Internet Web sites, such as www.DancerDorm.com and www.xxxpassword.com. Rick's also owns and/or operates four Rick's Cabaret locations, three of which are in Houston and one of which is in Minneapolis. Rick's also owns and operates two XTC Cabarets, which are located in San Antonio and Austin, through its 93% owned subsidiary, Taurus Entertainment Companies Inc. Rick's and its subsidiaries own all the real estate properties where their cabarets and Internet production studio are located except its south Houston location, which is leased.
Other companies in the adult entertainment industry include New Frontier Media Inc., Playboy Enterprises Inc. and Private Media Group
This press release contains forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause Rick's actual results to differ materially from those indicated in this press release include the risks and uncertainties as to whether the definitive documentation will ultimately be executed, the future operational and financial results of the newly acquired Web site, the future operational strength of Voice Media, the laws governing the operation of adult entertainment businesses, competitive factors, dependence on key personnel, and the ability to manage operations. 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, contact Eric Langan, President of Rick's, at 281/820-1181, e-mail eric@ricks.com, or Larry Howell, The Howell Group, at 214/368-1592, e-mail howgroup@iglobal.net
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