Rick's Cabaret International, Inc. Completes Private Placement Of 1,165,000 Shares Of Its Stock For Proceeds Of $16.3 Million
HOUSTON-(November 19, 2007)-Rick's Cabaret International, Inc.
operator of upscale gentlemen's clubs, announced today that it has sold
1,165,000 shares of its common stock to institutional investors at a price
of $14 per share, raising gross proceeds of $16,310,000.
The funds will be applied toward the purchase of an adult nightclub in
the Southeastern United States that it believes will add about $18 million
in annual revenue and about $8 million in EBITDA (earnings before income
taxes, depreciation and amortization).
As part of the equity financing Rick's Cabaret entered into a registration
rights agreement to register the shares for the purchasers. Net proceeds
after payment of placement fees and other expenses will be approximately
Ford & Co.(AMEX: MEM)
was the placement agent for the
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 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 Internet
membership Web site, couplestouch.com,
and a network of online adult auction sites under the flagship URL
Cabaret common stock is traded on NASDAQ under the symbol RICK.
For 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 anticipated
rates of same-store sales; hire and train additional nightclub personnel
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. 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
go to www.ricks.com.
for further information: Allan Priaulx, 212-338-0050, [email protected]