WEST ORANGE, N.J., Jan. 14, 2004 (PRIMEZONE) -- Rascals International Inc. (OTCBB:RSCA) announced today that it had signed a definitive purchase agreement to acquire 100% ownership of a nationally known chain of popular nightclubs. The purchase, for a combination of cash, stock and the assumption of debt, will add approximately $12.0 million of annual revenue, and a 20 percent pretax net to Rascals' existing comedy club operations during the 2004 fiscal year. The parties anticipate closing the transaction in the First Quarter 2004.
"We intend to introduce our existing entertainment product to all of the newly acquired locations, which will transform Rascals into one of North America's premier live entertainment providers," stated Ed Rodriguez, Rascals Chairman and CEO. "This will enable us to attract the best comedic performers at competitive rates, offering our customers a quality product at an affordable price. Upon the completion of this transaction, Rascals will have a total of fifteen Company owned and operated clubs located throughout the United States with another ten clubs scheduled for build out by year end," Rodriguez added. "It has always been our goal to bring the concept of comedy, dancing, light fare and club ambiance to new additional locations nationwide, by building mega-entertainment complex's in existing locations, malls, and as stand-alones. This acquisition will help us to achieve that objective."
About Rascals International, Inc:
Rascals International, Inc. is one of the premier comedy clubs in the United States, drawing upon its respected national recognition and rich history of providing the highest quality comedic entertainment in the industry. Currently, the company prides itself on its ability to employ successful entertainers at its growing chain of venues, both in its stand-alone and hotel-based operations.
For further information, contact Ed Rodriguez at 973-243-8080.
The information in this Press Release includes certain "forward-looking" statements within the meaning of the Safe Harbor provisions of Federal Securities Laws. Investors are cautioned that such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will provide to be correct. Factors that could cause results to differ include, but are not limited to successful performances of internal plans, the impact of competitors, and general economic risks and uncertainties.