LOS ANGELES — Rick's Cabaret International says it has agreed to purchase the remaining interest of a new topless nightclub yet to be opened in Los Angeles County.
"We are delighted that we will own 100 percent of this exciting new venue," Eric Langan, CEO of Rick's Cabaret, said in a statement.
The chain, with 37 adult clubs, wouldn't say where the club will be located in the county, only disclosing it will a medium-sized club with 12,000 square feet of space and located near major Los Angeles-area freeways.
Langan said the Los Angeles club, slated to open in June, allows the company to enter the California market, "giving us a true coast-to-coast network of clubs."
Under terms of the deal signed last week, a subsidiary of Rick's Cabaret will use 100,000 restricted shares of common stock of Rick's Cabaret International Inc. to purchase the 50 percent of the club it did not already own. On Tuesday, Rick's Cabaret was trading at $8.73 a share, up two cents, in over-the-counter trading.
The deal hinges on adult club owner Jerry Westlun, who operates 19 clubs under the brands The Fantasy Showclubs and The Pony, successfully transferring permits, including sexually oriented business licenses, to the chain.
The club has been on the drawing boards and in construction for more than a year.