This excerpt taken from the RICK 8-K filed Sep 8, 2008.
Eric Langan, President and CEO of Rick’s Cabaret. “The acquisition gives us the finest club in the most exciting entertainment market in the country. We will operate the facility under the Rick’s Cabaret brand, which is an important step in our national branding strategy. The deal is immediately accretive and we estimate it will add 20 to 25 cents in annualized earnings per share.”
Under the final terms of the purchase agreement Rick’s Cabaret acquired the club and an option to purchase the land where it is located for $12 million in cash, a two-year $3 million promissory note at eight percent interest with the initial payment due in April 2009, and issuance of 200,000 restricted shares of Rick’s Cabaret common stock.
The agreement contains a “put” clause under which the seller,