LOS ANGELES, March 26, 2013 /PRNewswire/ -- Rick's Cabaret International, Inc. (NASDAQ: RICK) has agreed to purchase through a subsidiary the remaining half of a new topless nightclub in Los Angeles County and will now own 100 percent of the venue.
Under terms of a definitive agreement signed this week, a subsidiary of Rick's Cabaret will use 100,000 restricted shares of common stock of Rick's Cabaret International, Inc. to purchase the 50 percent of the 12,000 square foot club it did not already own.
The club, which is expected to open in June, is located near major Los Angeles area freeways. The company said the exact location would be announced at a later date.
Closing on the transaction will take place five business days after Mr. Westlund has obtained all necessary permits and authorizations needed to conduct an adult entertainment business at the venue, including any sexually oriented business permits and licenses.
"We are delighted that we will own 100 percent of this exciting new venue," said Eric Langan, President and CEO of Rick's Cabaret, which has 37 adult clubs, bars and restaurants around the country. "We always prefer to own 100 percent of our venues. This club allows us to enter the California market, giving us a true coast-to-coast network of clubs."
The agreement also provides for a long-term lease for the property with an option to purchase it at a later date.
About Rick's Cabaret: Rick's Cabaret International, Inc. (NASDAQ: RICK) is home to upscale adult nightclubs serving primarily businessmen and professionals that offer live entertainment, dining and bar operations. Nightclubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities are named "Rick's Cabaret," "XTC," "Club Onyx" and "Tootsie's Cabaret" and other brand names. Sexual contact is not permitted at any locations. Rick's Cabaret also operates a media division, ED Publications. Rick's Cabaret common stock is traded on NASDAQ under the symbol RICK. For further information contact email@example.com or visit www.ricksinvestor.com. Twitter: @rickscabaret; Facebook: http://www.facebook.com/rickscabaretintl.
Forward-looking Statements: 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 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 visit www.ricksinvestor.com.
SOURCE Rick's Cabaret International, Inc.