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Rick's Cabaret to acquire additional adult business in New York City

Rick's Cabaret has agreed to acquire a second adult business in midtown New York City. The company plans to create a new gentlemen's club on the midtown Manhattan site near Times Square. Rick's Cabaret said it will pay $3M for the business, currently operating as an adult book and novelty store. The transaction calls for a payment of $1.5M in cash and $1.5M in 6% promissory notes that are convertible into shares of Rick's Cabaret common stock at a conversion price of $10.25. The company will also enter into a new 20-year lease for the building at the closing of the transaction.