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Subsequent Events
6 Months Ended
Mar. 31, 2017
Subsequent Events [Abstract]  
Subsequent Events

12. Subsequent Events

 

On April 26, 2017, subsidiaries of the Company acquired the assets of the Hollywood Showclub in the Greater St. Louis area, as well as the club’s building and land, adjacent land, and a nearby building and land that can be used for another gentlemen’s club. The total purchase price for all the acquired assets and real properties was $4.2 million, paid in cash at closing. The Company plans to apply for mortgage financing for the acquired properties.

 

On May 1, 2017, the Company raised $5.4 million through the issuance of 12% unsecured promissory notes to certain investors, which notes mature on May 1, 2020. The notes pay interest-only in equal monthly installments, with a lump sum principal payment at maturity.

 

On May 8, 2017, a subsidiary of the Company acquired the company that owns Scarlett’s Cabaret Miami in Pembroke Park, Florida along with certain related intellectual property for total consideration of $25.952 million, payable $5.4 million at closing, $5.0 million after six months through a short-term 5% note, and $15.552 million through a 12-year amortizing 8% note.