Core Points - RCI Hospitality Holdings, Inc. has acquired 821,000 shares from ADW Capital Partners for $30.0 million, translating to $36.54 per share, with $8.0 million in cash and $22.0 million in seller financing at 12% [1] - The acquisition reduces RCI's share count by approximately 9.5%, bringing the total outstanding shares to about 7,850,000 [4] - The transaction aligns with RCI's Capital Allocation Plan, aiming to reduce shares to 7.5 million by fiscal year 2030, and is expected to be accretive to free cash flow per share from day one [4] Company Overview - RCI Hospitality Holdings, Inc. operates over 60 locations and is a leading company in adult nightclubs and sports bars/restaurants in the United States [2]

Core Viewpoint - RCI Hospitality Holdings, Inc. is progressing with its "Back to Basics" 5-Year Capital Allocation Plan by selling assets, including a small club business in Harlingen, TX for $600,000 cash and a $180,000 annual lease starting January 1, 2026 [1] Asset Sales - The company has successfully closed the sale of a small club business in Harlingen, TX for $600,000 cash [1] - An annual lease of $180,000 will commence on January 1, 2026, as part of the transaction [1] - Additionally, three non-income producing properties are either under contract or have letters of intent [1]