Rick’s Cabaret Raises $7.2M to Expand Operations

HOUSTON — Rick's Cabaret International Inc. said Thursday it raised $7.2 million through convertible debentures that will be used to make future acquisitions.

Eric Langan, president and CEO of Rick's Cabaret, said the company is “well-positioned” to expand after “waiting for the economy to show signs of improvement.”

"We already have several targets of interest, but we want to talk with other possible acquisition candidates at the Gentlemen's Club Owners Expo in Las Vegas, which is attended by most club owners," Langan said.

That convention is slated for Aug. 23-26 at the Mandalay Bay hotel.

Langan said that last year, Rick’s Cabaret acquired five nightclubs and the remaining 49 percent of one other location.

"We are starting to see improvements in several of the markets we operate in and hope to see this continue in the next few quarters," Langan said.

The three-year debentures bear interest at 10 percent per annum and can be converted into shares of Rick's common stock at $8.75 per share.

A debenture, also called a note, is a certificate issued by a company acknowledging that it has borrowed money where interest is being paid.

The Rick's Cabaret debentures are redeemable by the company after six months from issuance if the closing price of Rick's stock is at least $11.50 for 20 consecutive trading days.The company also issued three-year warrants exercisable at $8.75 that can be called by Rick's Cabaret if shares trade for 20 consecutive trading days at $12.25.

A public company that trades on the Nasdaq, Rick's Cabaret owns, operates or licenses adult nightclubs in New York, Miami, Philadelphia, Las Vegas, New Orleans, Charlotte, Dallas, Houston, Minneapolis and other cities under the names Rick's Cabaret, XTC, Club Onyx and Tootsie's Cabaret.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Honey Play Box Debuts 'Tressa' Vibrator

Honey Play Box introduced its new Tressa multi-stimulation, app-enabled vibrator.

Blush Debuts 2 New Glass Plugs From 'Oh My Gem' Collection

Blush has introduced two new glass plugs, Lustre and Prestige, from its Oh My Gem collection.

EP Products Founder Don Wilson Passes Away

Don Wilson, the founder of EP Products and a notable figure in Canada's adult retail community, has passed away. He was 78.

Orion Debuts 'Your Strap-On' Collection From 'You2Toys' Line

Orion Wholesale has introduced the Your Strap-On collection from its You2Toys line.

Stephen Colbert Takes Aim at Texas' Crackdown on Sex Toys

Stephen Colbert is cracking up over Texas lawmakers’ crackdown on sex toys in the state.

XR Brands 'Silicone Body Forms' Highlighted at Paris Fashion Week

XR Brands’ Ripped Silicone Male Chest and Perky Pair Silicone Breasts were highlighted at 2025 Paris Fashion Week.

Eye of Love Introduces 'Matchmaker Collection' Planogram

Eye of Love has debuted a new display planogram for its Matchmaker Collection of pheromone-infused scents.

Fleshlight Debuts Taylor Vixxen Stroker

Fleshlight has introduced its new Pro stroker, molded on the anatomy of Taylor Vixxen.

Orion Expands 'LateX' Collection With 2 New Outfits

Orion Wholesale has added two new outfits to its LateX collection of fetish apparel.

Blush Debuts 'Unicorn Dreams' Vibrator

Blush has introduced the new Unicorn Dreams vibrator from its Play With Me collection.

Show More