Friday 17 March 2023

Texas, US-based adult nightclub and sports bars/restaurant operator RCI Hospitality Holdings, Inc. (NASDAQ: RICK) has acquired two Baby Dolls and three Chicas Locas adult nightclubs and their associated real estate in the Dallas-Fort Worth and Houston markets, the company said.

The company previously announced signing definitive agreements in December for the USD 66.5m acquisition, RCI's second largest since its founding and one of the largest in the history of the adult nightclub industry.

Payment consisted of USD 25m in cash of which USD 10m is being financed through an unsecured bank line of credit; 10-year, 7% seller financing notes totaling USD 25.5m; and 200,000 restricted shares of common stock of RCI valued at USD 16m, subject to a lock-up, leak out agreement.

RCI Hospitality has more than 60 locations.