Rick's Cabaret International, Inc. Signs Amended Purchase Agreement and Will Buy 100% of Philadelphia Night Club.
HOUSTON-(January 29, 2008)-Rick's Cabaret International, Inc.
premier operator of upscale gentlemen's clubs, said today its wholly owned
subsidiary has signed an amended Purchase Agreement and will now acquire
100 percent of The End Zone, Inc.
, owner of an upscale,
25,000 square foot adult nightclub in Philadelphia, Pennsylvania.
The new contract amends an agreement signed last October under which a
subsidiary of Rick's Cabaret would have purchased 51 percent of The
End Zone, Inc.
, which owns and operates the Crazy Horse
at 2908 South Columbus Blvd. As part of the new agreement
Rick's Cabaret continues its plan to acquire a 51 percent interest in
the real property on which the club is located.
"We are enthusiastic about the opportunity to own 100 percent of
what is Philly's most desirable gentlemen's club," said Eric
, President and CEO of Rick's Cabaret. "The club is
located a few minutes from Center City, next to the major sports complex
where Philadelphia Phillies
games are played,
and near the site of a proposed new gambling casino. We expect that very
soon Rick's Cabaret Philadelphia will be the No. 1 adult entertainment
and dining establishment in the area."
Rick's Cabaret will pay $3.5 million in cash for the 51 percent interest
in the real property and will issue 195,000 shares of the company's stock
valued at $23 per share. The shares will be subject to certain lock-up/leak-out
provisions that limit their resale. The transaction is anticipated to
close within seven days of approval by the Pennsylvania Liquor Control
Board, which the company anticipates will happen in the current fiscal
Mr. Langan said that upon finalization of the transaction the company
plans to incorporate an upscale steakhouse and sports bar and convert
the venue to the Rick's Cabaret model that has been successful in markets
including New York City, Houston, Minneapolis and other cities.
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]