Rick's Cabaret (RICK) Renegotiates Terms of Deal to Buy Scores-Las Vegas

July 1, 2008 1:24 PM EDT

Rick's Cabaret International, Inc. (NASDAQ: RICK) today announced that it has renegotiated payment terms and set a new closing date for its purchase of the Scores-Las Vegas adult nightclub.

Under the terms of the renegotiated agreement, Rick's Cabaret will pay a total purchase price $21 million, payable $12 million in cash to DI Food & Beverage of Las Vegas, LLC, a $5 million convertible debenture bearing four percent interest and a non-convertible promissory note for $4 million at eight percent interest.

A new closing date has been set for the later of July 25, 2008 or within five business days of the date of issuance of final permits to operate the club and the assignment of the existing lease.

Under terms of the original agreement to purchase Scores-Las Vegas, Rick's Cabaret had agreed to pay $16 million in cash and a $5 million convertible debenture bearing four percent interest. The agreement includes an option to buy the property on which the Scores Las Vegas is located.

Rick's Cabaret International, Inc., through its subsidiaries, operates upscale adult nightclubs serving primarily businessmen and professionals.

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