SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT: NOVEMBER 27, 2000
RICK'S CABARET INTERNATIONAL, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
TEXAS 0-26958 76-0037324
(STATE OR OTHER JURISDICTION (COMMISSION FILE NUMBER) (IRS EMPLOYER
OF INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
505 NORTH BELT, SUITE 630
HOUSTON, TEXAS 77060
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES, INCLUDING ZIP CODE)
(281) 820-1181
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
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Item 2. Acquisition or Disposition of Assets
On November 27, 2000, we acquired the Chesapeake Bay Cabaret, an upscale
gentlemen's club located just minutes from the NASA Space Center and Houston's
Hobby Airport. The seller and landlord is WMF Investments Inc. The transaction
was completed once all licenses and permits had been granted and issued to
Rick's. Rick's management had been operating the club under an agreement signed
in May which granted Rick's the right to manage the business until the
completion of the acquisition.
The purchase price for business of the Chesapeake Bay Cabaret was 160,000
restricted shares of Rick's common stock. We also entered into a 10-year lease
agreement between Rick's and WMF Investments. The lease grants Rick's an
additional 10-year option for the property and the building where the Chesapeake
Bay Cabaret is located. The initial lease payment is $12,000 per month plus
4% of gross revenues exceeding $125,000 per month.
In the event that on August 6, 2001, the average closing price of Rick's
common stock for the sixty (60) days prior to August 6, 2001 is less than $5.00
per share then we will be obligated to pay by making a promissory note to the
seller an amount equal to the lesser of (i) $250,000.00 or (ii) $800,000.00 less
the market value of the 160,000 shares. Such a promissory note would have an
interest rate of 10% per annum and 108 monthly payments.
This transaction was the result of arm length negotiations between
the parties. However, no appraisal was done.
Item 7. Financial Statements and Exhibits
(a) Financial Statements
None.
(b) Exhibits
10.1 Lease
10.2 Asset Purchase Agreement
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report on Form 8-K to be signed on its behalf by
the undersigned hereunto duly authorized.
RICK'S CABARET INTERNATIONAL, INC.
By: /s/ Eric Langan
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Date: November 29, 2000 Eric Langan
President and Chief Accounting Officer
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