VCG Holding Corp. Announces Agreement to Purchase Minneapolis Club
January 09 2007 - 4:06PM
Business Wire
VCG Holding Corp. (VCG) (AMEX: PTT) has announced today that a
letter of intent to acquire Classic Affairs, Inc. (Classic) had
been signed. Classic owns and operates a premium adult nightclub in
downtown Minneapolis, Minnesota under the name of Schieks Palace
Royale. Under the terms of the agreement, VCG will acquire 100% of
the outstanding common shares of Classic for $6,000,000. VCG in
addition has an agreement to purchase the nightclub property for
$4,000,000. The real estate housing Schieks Palace Royale is a
former federal reserve bank and is a registered national historic
landmark. The definitive agreement is to be signed upon approval of
the transfer of the liquor license. VCG expects the transfer of the
liquor license to be approved prior to the end of April 2007. A
formal closing under the definitive agreement will follow within
one week after the liquor license has been transferred. �We believe
that Schieks is one of the premier clubs in the United States and
we are very pleased with the opportunity to make this purchase,�
stated Troy H. Lowrie, Chairman and CEO of VCG Holding Corp. About
VCG Holding Corp. VCG Holding Corp. is an owner, operator and
consolidator of adult nightclubs throughout the United States. The
Company currently owns eight adult nightclubs, one upscale dance
lounge and operates five other adult nightclubs under management
agreements. The owned and managed clubs are located in
Indianapolis, St. Louis, Denver, Colorado Springs, Phoenix, and
Louisville. Forward-Looking Statements Statements contained in this
press release concerning future results, performance or
expectations are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. These
statements include statements regarding the intent, belief or
current expectations of the Company and members of its management
team, as well as assumptions on which such statements are based.
All forward-looking statements in this press release are based upon
information available to the Company on the date of this press
release. Forward-looking statements involve a number of risks and
uncertainties, and other factors, that could cause actual results,
performance or developments to differ materially from those
expressed or implied by those forward-looking statements including
the following: failure of facts to conform to necessary management
estimates and assumptions; the Company�s ability to identify and
secure suitable locations for new nightclubs on acceptable terms,
open the anticipated number of new nightclubs on time and within
budget, achieve anticipated rates of same-store sales, hire and
train additional nightclub personnel and integrate new nightclubs
into its operations; the continued implementation of the Company�s
business discipline over a large nightclub base; unexpected
increases in cost of sales or employee, pre-opening or other
expenses; the economic conditions in the new markets into which the
Company expands and possible uncertainties in the customer base in
these areas; fluctuations in quarterly operating results;
seasonality; changes in customer spending patterns; the impact of
any negative publicity or public attitudes; competitive pressures
from other national and regional nightclub chains; business
conditions, such as inflation or a recession, or other negative
effect on nightclub patterns, or some other negative effect on the
economy, in general, including (without limitation) growth in the
nightclub industry and the general economy; changes in monetary and
fiscal policies, laws and regulations; war, insurrection and/or
terrorist attacks on United States soil; and other risks identified
from time to time in the Company�s SEC reports, including the
Annual Report on Form 10-KSB for 2005, Quarterly Reports on Form
10-QSB and Current Reports on Form 8-K, registration statements,
press releases and other communications. The Company undertakes no
obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events
or changes to future operating results over time.
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