VCG Holding Corp. Announces Additional Financing
11 July 2007 - 11:17PM
Business Wire
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.
Vcg (AMEX:PTT)
Historical Stock Chart
From May 2024 to Jun 2024
Vcg (AMEX:PTT)
Historical Stock Chart
From Jun 2023 to Jun 2024
Real-Time news about Vcg Holding Corp (American Stock Exchange): 0 recent articles
More VCG Holding Corporation News Articles