Rick's Cabaret International to Purchase Controlling Interest in Adult Nightclub Near Downtown Omaha

Subsidiaries of Rick's Cabaret International, Inc., RICK has signed an asset purchase agreement that will give it controlling ownership of an adult nightclub just east of downtown Omaha. A subsidiary of Rick's Cabaret also has agreed to purchase the building where the club is located. Under terms of the agreed transaction Rick's Cabaret will pay $425,000 in cash to the current owners of Sarie's Lounge at 2449 N. 13th Street in Carter Lake. The current owners of Sarie's Lounge will hold a 40 percent interest in a new subsidiary formed to operate the club. Rick's Cabaret will receive a 10 percent royalty on gross revenues for the use of the Rick's Cabaret name by the new subsidiary and Rick's Cabaret will also be entitled to 60 percent of profits while the minority shareholders will earn the remaining 40 percent. Under terms of a separate purchase agreement Rick's Cabaret subsidiary RCI Holdings, Inc. has agreed to pay $1,275,000 for the building that houses the current Sarie's Lounge. RCI Holdings will lease the property back to the new owners.