HOUSTON, Jan. 17, 2017 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced the sale of the first of several non-income producing properties owned by subsidiaries.
RCI said a subsidiary closed on the sale of the property off US 820 in Fort Worth for $2.2 million in cash. The price was in the range of expected value. Proceeds were used to pay off the remaining $1.5 million balance of a related 11% balloon note, due in 2018, and related fees. Balance of the proceeds will be used to repurchase stock, fund growth, or repay debt.
"Today's news represents the first concrete results of another process we have initiated to free up capital and continue to improve cash flow," said Eric Langan, President and CEO. "We currently estimate the planned sale of our seven other non-income producing properties could approximate $10 million in total proceeds."
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With 41 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in gentlemen's clubs and sports bars/restaurants. Clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis and other cities operate under brand names, such as "Rick's Cabaret," "XTC," "Club Onyx," "Vivid Cabaret," "Jaguars" and "Tootsie's Cabaret." Sports bars/restaurants operate under the brand name "Bombshells." Please visit http://www.rcihospitality.com/
This press release may contain 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 press release, including the risks and uncertainties associated with operating and managing an adult business, the business climates in cities where it operates, the success or lack thereof in launching and building the company's businesses, risks and uncertainties related to cybersecurity, 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. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.
Media & Investor Contacts
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/rci-announces-sale-of-first-of-several-non-income-producing-properties-300391812.html
SOURCE RCI Hospitality Holdings, Inc.