Rick’s Cabaret Raises $7.2M to Expand Operations

HOUSTON — Rick's Cabaret International Inc. said Thursday it raised $7.2 million through convertible debentures that will be used to make future acquisitions.

Eric Langan, president and CEO of Rick's Cabaret, said the company is “well-positioned” to expand after “waiting for the economy to show signs of improvement.”

"We already have several targets of interest, but we want to talk with other possible acquisition candidates at the Gentlemen's Club Owners Expo in Las Vegas, which is attended by most club owners," Langan said.

That convention is slated for Aug. 23-26 at the Mandalay Bay hotel.

Langan said that last year, Rick’s Cabaret acquired five nightclubs and the remaining 49 percent of one other location.

"We are starting to see improvements in several of the markets we operate in and hope to see this continue in the next few quarters," Langan said.

The three-year debentures bear interest at 10 percent per annum and can be converted into shares of Rick's common stock at $8.75 per share.

A debenture, also called a note, is a certificate issued by a company acknowledging that it has borrowed money where interest is being paid.

The Rick's Cabaret debentures are redeemable by the company after six months from issuance if the closing price of Rick's stock is at least $11.50 for 20 consecutive trading days.The company also issued three-year warrants exercisable at $8.75 that can be called by Rick's Cabaret if shares trade for 20 consecutive trading days at $12.25.

A public company that trades on the Nasdaq, Rick's Cabaret owns, operates or licenses adult nightclubs in New York, Miami, Philadelphia, Las Vegas, New Orleans, Charlotte, Dallas, Houston, Minneapolis and other cities under the names Rick's Cabaret, XTC, Club Onyx and Tootsie's Cabaret.

Related:  

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Swiss Navy Debuts New Variety Packs

Swiss Navy has introduced two new personal lubricant Variety Packs.

BasisDx Adds Expedited Results Option for 'Pro13' Home Testing Kit

PASS-certified home testing kit provider BasisDx has added a new option for expedited test results for its Pro13 kit.

Kiiroo, Pineapple Support Launch 'Empower Hour' Series on FeelHubX YouTube Channel

Kiiroo and Pineapple Support have teamed up to launch the “Empower Hour” series on the FeelHubX YouTube channel.

Orion Debuts 'Suck-O-Mat 3' Masturbator

Orion Wholesale has introduced the third edition of its Suck-O-Mat masturbator.

Biird Debuts 'Ohwii' Glass Dildo

Biird has introduced Ohwii, its new double-ended glass dildo.

Sportsheets Releases New Training Video for 'Edge' Line

Sportsheets has released its latest training video, titled "Edge Product Training," the third in a series hosted by Brand Ambassador Rin Musick.

Exsens Marks Its 10th Anniversary

Intimate wellness and body care brand Exsens is celebrating its 10-year anniversary.

Honey Play Box Debuts 'Trill' Vibrator

Honey Play Box has debuted its new Trill app-controlled vibrator, which joins Melody and Elektra in the company's Kegel toy collection.

Osuga Debuts 'Flow' Vibrator

Pleasure brand Osuga has introduced its new Flow vibrator.

Orion Unveils 6 New Styles From 'Black Level' Line

Orion Wholesale has introduced six new styles from its Black Level line.

Show More