Vcg (AMEX:PTT)
Historical Stock Chart
From Jun 2019 to Jun 2024
VCG Holding Corp. (AMEX: PTT), a leading consolidator and operator of
adult nightclubs, announced a new $10.0 million debt financing which
will enable the company to complete the two acquisitions (totalling five
clubs) announced in June 2007.
As part of this financing package, the company increased its line of
credit with its lead commercial bank by $5.0 million, bringing the
company’s total undrawn availability under
this facility to $6.6 million. The interest rate on this line of credit
is 8.75%. The company also received commitments from other investors for
$5.0 million of debt with the same terms as the line of credit.
Troy Lowrie, the company’s Chairman and CEO
stated: "With this additional financing, our cash on hand of
approximately $3 million and our continually positive free cash flow, we
have more than enough capital to complete our announced acquisitions.
Our balance sheet remains healthy, our acquisition pipeline remains
robust and we look forward to announcing additional, accretive
acquisitions. We are also committed to lowering the company’s
cost of capital and believe that with our increased size, proven
business strategy and high free cash flow generating assets that we
should be able to reduce our financing rates.”
About VCG Holding Corp.
VCG Holding Corp. is an owner, operator and consolidator of adult
nightclubs throughout the United States. The Company currently owns
fourteen adult nightclubs and one upscale dance lounge. The night clubs
are located in Indianapolis, St. Louis, Denver, Colorado Springs,
Raleigh, Minneapolis, and Louisville.
Forward-looking statements
Statements contained in this press release concerning future results,
performance or expectations are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
statements include statements regarding the intent, belief or current
expectations of the Company and members of its management team, as well
as assumptions on which such statements are based. All forward-looking
statements in this press release are based upon information available to
the Company on the date of this press release. Forward-looking
statements involve a number of risks and uncertainties, and other
factors, that could cause actual results, performance or developments to
differ materially from those expressed or implied by those
forward-looking statements including the following: failure of facts to
conform to necessary management estimates and assumptions; the Company’s
ability to identify and secure suitable locations for new nightclubs on
acceptable terms, open the anticipated number of new nightclubs on time
and within budget, achieve anticipated rates of same-store sales, hire
and train additional nightclub personnel and integrate new nightclubs
into its operations; the continued implementation of the Company’s
business discipline over a large nightclub base; unexpected increases in
cost of sales or employee, pre-opening or other expenses; the economic
conditions in the new markets into which the Company expands and
possible uncertainties in the customer base in these areas; fluctuations
in quarterly operating results; seasonality; changes in customer
spending patterns; the impact of any negative publicity or public
attitudes; competitive pressures from other national and regional
nightclub chains; business conditions, such as inflation or a recession,
or other negative effect on nightclub patterns, or some other negative
effect on the economy, in general, including (without limitation) growth
in the nightclub industry and the general economy; changes in monetary
and fiscal policies, laws and regulations; war, insurrection and/or
terrorist attacks on United States soil; and other risks identified from
time to time in the Company’s SEC reports,
including the Annual Report on Form 10-KSB for 2006, Quarterly Reports
on Form 10-QSB and Current Reports on Form 8-K, registration statements,
press releases and other communications. The Company undertakes no
obligation to update or revise forward-looking statements to reflect
changed assumptions, the occurrence of unanticipated events or changes
to future operating results over time.