Rick's Cabaret International Inc., Plans to Acquire New Gentlemen's Club in Charlotte, NC
HOUSTON--(February 15, 2005)--Rick's Cabaret International
which operates upscale gentlemen's clubs, said today it has entered
into a option agreement to acquire a 30,000 square foot nightclub
in Charlotte, NC. The club will offer adult entertainment for men
seven days a week and will also present a male review for women
five nights a week in an adjoining self-contained 8,000 square foot
Cabaret CEO Eric Langan said his company has begun operating the
former The Manhattan Club (5300 Old Pineville Road, Charlotte) under
a management and licensing agreement. The venue, which was the site
of the highly successful Club 2000 for many years, has been renamed
The option agreement calls for Rick's Cabaret to acquire Top Shelf
LLC, for $1,000,000 through the issuance of 180,000 shares of restricted
common stock and a seven-year promissory note. The acquisition is
expected to be completed within twelve weeks, after approval of
licenses and authorizations required to run the business and other
conditions consistent with transactions of this type.
Rick's Cabaret said that if the closing takes place as expected,
it anticipates income from the new club should be accretive to earnings
in the 2005 fiscal year, since start up costs will be limited chiefly
to marketing expenses, signage and some interior modifications.
This is the second major acquisition announced this year by Rick's
Cabaret, which on January 18th purchased the former Paradise Club
in midtown New York City. When remodeling is completed in mid 2005,
it will become Rick's Cabaret-NYC and will be the company's flagship
location, catering to local businessmen, professionals, business
travelers, tourists and sports fans visiting nearby Madison Square
Mr. Langan said: "The Charlotte club was completely renovated within
the last year and is a first class venue for a premiere men's club.
The club is in an ideal location, equidistant to nearby Charlotte
Douglas International Airport, downtown and major office parks.
The addition is consistent with our expansion strategy to acquire
existing clubs in locations that meet our growth and income targets,
and are receptive to the upscale club formula we have developed.
We will bring in management from some of our other locations initially
to convert the club to our standards. We are also excited about
the opportunity to offer a fun male review program for the ladies
in a comfortable setting."
Rick's Cabaret International, Inc. (www.ricks.com)
operates upscale adult nightclubs serving primarily businessmen
and professionals that offer live adult entertainment and high quality
restaurant and bar operations. The company owns, operates or licenses
eleven adult nightclubs in New York City, New Orleans, Houston,
Minneapolis, Charlotte and other cities under the names "Rick's
Cabaret," "XTC," "Club Onyx" and "Hummers."
No sexual contact is permitted at any of these locations. Rick's
Cabaret also owns an adult Internet membership Web site, www.couplestouch.com,
and a network of nine online auction sites for adult products under
the flagship URL www.naughtybids.com.
Rick's Cabaret common stock is traded on the NASDAQ SmallCap market
under the symbol RICK. For further information contact [email protected].
This press release may contain forward-looking information within
the meaning of Section 21E of the Securities Exchange Act of 1934
that involves significant risks and uncertainties, and is subject
to the safe harbors created by this section. Important factors that
could cause actual results for Rick's Cabaret to differ materially
from those indicated in this press release include the risks and
uncertainties as to the future operational and financial results
of our Web sites, conditions relevant to real estate transactions,
the future operational performance of our partners, the laws governing
the operation of adult entertainment businesses, competitive and
economic factors, dependence on key personnel and the ability to
manage operations. Rick's Cabaret has no obligation to update or
revise the forward-looking statements to reflect the occurrence
of future events or circumstances. Please refer to the documents
Rick's Cabaret files from time to time with the Securities and Exchange
Commission, in particular the most recent quarterly reports on Form
10-QSB and annual report on Form 10-KSB, which are available at
the company's website, www.ricks.com.
Contact for further information: Allan Priaulx, 212-338-0050, [email protected]