VCG Holding Corp. Announces Sale of Phoenix Club
January 18 2007 - 4:52PM
Business Wire
VCG Holding Corp. (VCG) (AMEX: PTT), a nationwide owner/operator of
adult nightclubs, announced today that it sold its ownership
interest of its adult night club in Phoenix, AZ. VCG, on January
15, 2007, signed an agreement to sell the membership interest in
Epicurean Enterprises, LLC d/b/a Penthouse Phoenix (EEI). The sale
was approved by the board of directors on January 10, 2007, and VCG
completed the transaction as of January 15, 2007. The terms of the
agreement include the sale of the membership interest (100%) for
$200,000 in cash and 300,000 shares of common stock in VCG. The
purchaser is an independent third party who owned shares in VCG.
The value of the VCG shares on January 15, 2007 was $7.90 per share
making the total sales price $2,570,000. In addition to the sale of
the club, VCG Real Estate Holding, Inc. (wholly owned subsidiary of
VCG) entered in a lease agreement with the purchaser of EEI for the
property that the club operates. The lease is five years, with
three five-year options. The lease is guaranteed personally by the
purchaser of EEI and began January 15, 2007. �The sale of this
asset is a part of the shift in our strategic plan to focus on
clubs with five million or more in revenue as a base for an area of
operations. We believe that the sale of this club allows us to use
these managerial and capital resources towards higher revenue
opportunities,� stated Donald W. Prosser, Chief Financial Officer
of VCG. The effect of this sale and the financial results of
selling the Phoenix club were included in the Earnings Guidance for
2007, 2008, and 2009 press release January 10, 2007. About VCG
Holding Corp. VCG Holding Corp. is an owner, operator and
consolidator of adult nightclubs throughout the United States. The
Company currently owns seven 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, 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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