VCG Holding Corp. Sells Fort Worth Club in Cash and Stock Transaction; Acquires More Than 500,000 Shares of Common Stock Under S
19 Julio 2010 - 7:00AM
VCG Holding Corp. (Nasdaq:VCGH)
("VCG" or
"the Company") today announced the sale of its Jaguar's
Gold Club in Fort Worth, Texas to a wholly-owned subsidiary of
Rick's Cabaret International, Inc. ("RICK"). Total consideration
consisted of $1.0 million cash and 467,497 shares of VCG common
stock held by RICK. VCG will use the cash proceeds from the
sale to pay down high interest debt, and will cancel the shares of
common stock included in the transaction.
The Company also announced that it repurchased a total of
505,519 shares of VCG common stock at an average price of $1.70 per
share during the second quarter ended June 30, 2010, under its
previously announced share repurchase plan. These purchases
were separate from the 467,497 shares acquired as part of the sale
of Jaguar's Gold Club.
Troy Lowrie, Chairman and Chief Executive Officer of VCG,
stated, "The sale of our Forth Worth Club and second quarter 2010
share repurchase activity combined to allow us to acquire and
subsequently cancel 973,016 shares of VCG common stock, or
approximately 5.6% of our basic and fully diluted shares
outstanding at March 31, 2010. The sale of Jaguar's Gold Club
will allow us to focus our resources on our other Club locations,
including our Jaguar's Dallas venue. We do not anticipate that
the sale of Jaguar's Gold Club will have a material impact on our
earnings, especially when considering the interest savings we
expect to realize following the $1.0 million reduction in our high
interest debt."
ABOUT VCG HOLDING CORP.
VCG Holding Corp. is an owner, operator, and consolidator of
adult nightclubs throughout the United States. The Company
currently owns 19 adult nightclubs. The nightclubs are located in
Anaheim, Indianapolis, St. Louis, Denver, Colorado Springs, Dallas,
Raleigh, Minneapolis, Louisville, Miami, and Portland, ME.
The VCG Holding Corp. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5105
FORWARD-LOOKING STATEMENT
Certain statements in this release are forward-looking
statements within the meaning of the Securities Litigation Reform
Act of 1995. Such statements are based on current expectations,
estimates and projections about the Company's business based, in
part, on assumptions made by management. These statements are not
guarantees of future performance and involve risks and
uncertainties that are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed
or forecasted in such forward-looking statements due to numerous
factors identified from time to time in the Company's reports with
the Securities and Exchange Commission, including our Annual Report
on Form 10-K for the year ended December 31, 2009 filed on March
15, 2010 and our Quarterly Report on Form 10-Q for the quarter
ended March 31, 2010 filed on May 14, 2010. All forward-looking
statements attributable to us or any persons acting on our behalf
are expressly qualified in their entirety by these cautionary
statements. All guidance and forward-looking statements in this
press release are made as of the date hereof and we do not
undertake any obligation to update any forecast or forward-looking
statements, except as may be required by law.
CONTACT: VCG Holding Corp.
Troy Lowrie, Chief Executive Officer
(303) 934-2424
tlowrie@vcgh.com
The Equity Group Inc.
Devin Sullivan, Senior Vice President
(212) 836-9608
dsullivan@equityny.com
Gerrard Lobo, Senior Account Executive
(212) 836-9610
globo@equityny.com
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