"We own all the real estate that the company's clubs are located on, except the new location, which we leased," said Eric Langan, president and CEO. The deal for the new location had been completed once all licenses and permits had been issued, although Rick's management has been operating the club since May, pending completion of the details.

The purchase price for the business calls for the issuance of 160,000 restricted shares of Rick's common stock to WMF Investments Inc. and a 10-year lease agreement that grants Rick's an additional 10-year option for the property and the building. Langan, president and CEO, said "we have been able to operate the new location at a profit during the latest fiscal quarter and anticipate continued earnings from this location. With the new location on Houston's south side, we will have greater leverage of our advertising dollars."

Langan told GlobeSt.com "we are currently looking to expand in several new cities and we always try to purchase the real estate or at least get an option to purchase it." Ft. Worth is the current target. Rick's has entered into a three-year lease with an option to purchase, provided all permits and licenses are issued. A hearing on the permit is set for Dec. 4.