VCG, which operates most of the clubs under the branded names PT’s, Diamond Cabaret and The Penthouse Club, plans on using the funds to acquire additional nightclubs as part of its strategic plan.
“The funds from this offering will allow us to continue our strategy of being the leading consolidator and operator in our industry,” CEO Troy Lowrie said.
One of two companies that are publicly traded — the other being Rick’s Cabaret International — VCG has remained true to its business plan since its inception in 2002: The company takes over clubs that are now privately owned by majority shareholder and founder Lowrie.
VCG, which forecasts $40.8 million in revenue this year, currently owns nine adult nightclubs, one upscale dance lounge and operates four other adult nightclubs under management agreements. The owned and managed clubs are located in Indianapolis; St. Louis; Denver; Colorado Springs, Colo.; Phoenix; and Louisville, Ky.
It plans on adding clubs in Chicago and Minnesota by the end of the first quarter of the year. It also anticipates two other acquisitions this year. The company has been one of the top performers on the Amex recently. Its share price has nearly tripled in the last four months to its closing price Friday of $8.76, up 16 cents.
