March 19, 2002 11:21am
Rick's Cabaret to Acquire Auction Site EroticBid.com
Source: Rick's Cabaret
by: Company Press Release
(HOUSTON, TX) -- Rick's Cabaret International, Inc. [Nasdaq: Rick] said today it has signed a letter of intent to acquire leading online adult auction site EroticBid.com and will operate it as part of company's NaughtyBids.com network.
The acquisition is subject to due diligence and the execution of definitive documents. Terms of the transaction were not disclosed.
Eroticbid.com was launched in June 2000 and quickly established itself as the auction site of choice for porn stars such as Houston and Jasmin St. Clair, who used it to auction off props from their films and more personal items, according to Dan Adams, founder of EroticBid.com.
EroticBid.com is the seventh adult-related auction site we have launched or acquired in the past year and it will bring us a new group of active, dedicated collectors of erotica and other unusual items, according to Eric Langan, CEO of Rick's Cabaret. The adult auction space is a growing part of our business and is attractive to us because it requires very low overhead and generates high margin returns. To date we have closed more than 500,000 successful Internet auction transactions.
EroticBid.com is located in Saddle River, N.J. Like other online auction sites, it does not inventory any goods but generates revenues through transaction fees for successfully completed, self-generated auctions. The sellers fulfill all product sales. EroticBid.com will continue to be accessed through its own Web address, eroticbid.com and through NaughtyBids, naughtybids.com.
About Rick's Cabaret:
Ricks Cabaret is organized into two business lines: 1) Nightclubs and entertainment, comprising four Rick s Cabaret clubs in Houston and Minneapolis, two XTC Clubs in San Antonio and Austin, and the Encounters club in Houston catering to couples in the swingers lifestyle and, 2) Internet activities, which encompass adult entertainment sites such as the xxxpassword.com membership portal that provides access to 127,000 adult oriented Websites, and six auction sites led by naughtybids.com operating on a single proprietary technology platform that earn revenue from commissions on auctions of adult paraphernalia and on Webmaster referral fees.
This press release contains forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause Rick's actual results to differ materially from those indicated in this press release include the risks and uncertainties as to the future operational and financial results of our Web sites, the future operational performance of our partners, the laws governing the operation of adult entertainment businesses, competitive factors, dependence on key personnel and the ability to manage operations. Rick's has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.