Strip Club Operator VCG to Be Listed on AMEX

Rhett Pardon
LAKEWOOD, Colo. – VCG Holding Corp. said Wednesday that the American Stock Exchange (AMEX) has approved its application for listing its shares of common stock.

The announcement comes on the heels of a deal VCG signed last month with Penthouse.

VCG, which owns and/or operates five nightclubs that feature exotic dancers, inked a licensing agreement with Penthouse magazine owner General Media Communications Inc. of New York to use the Penthouse trademark for undisclosed terms.

Lakewood, Colo.-based VCG has clubs in metropolitan Denver, Indianapolis, Memphis, St. Louis and Honolulu under names such as PT's Showclub and The Platinum Club.

In addition to exotic dancers, the clubs offer dining and bar services, as well as VIP rooms intended for entertaining business clients.

PT's Showclub in the Denver area recently reopened as the Penthouse Club Denver. It shares the Penthouse name with existing Penthouse Clubs in Greenville, S.C.; Cleveland; Dallas; San Antonio, Texas; and New York City.

"This is a great alliance between VCG and Penthouse Magazine." VCG CEO Troy Lowrie told XBiz. "This agreement will help achieve each others' goals of creating the nationwide branding of the Penthouse name."

VCG, which had revenue of $9.1 million in 2003, saw a 150 percent increase in sales growth last year. The company posted net income of $700,000.

And the company projects a far-greater record with its so-called “gentlemen’s clubs.”

“We believe that there is an opportunity for industry consolidation of many profitable first-class clubs which are available for acquisition on favorable terms,” the company said in a filing with the Securities and Exchange Commission.

The company’s business plan is to acquire existing strip clubs available for sale and refurbish them appearance both in the interior and exterior.

VCG recently acquired two more clubs – one in Phoenix and another in Minneapolis.

Lowrie owns more than 60 percent of the company’s stock.

The trading symbol for the company is expected to be PTT on the AMEX.

In midday trading Wednesday, VCG’s stock was up by 10 cents at $3.15 on the Over-the-Counter Bulletin Board.