May 3, 2010 (FinancialWire) — VCG Holding Corp. (NASDAQ: VCGH) said its board of directors has dissolved the special committee of directors that was formed in order to evaluate the previously announced proposal made by Troy Lowrie, VCG's chairman and chief executive officer, Lowrie Management, LLLP, an entity controlled by Lowrie, and certain other investors to acquire all of the outstanding common stock of the company for $2.10 per share in cash.

As previously announced, the Special Committee informed Lowrie that it determined, with input from its advisors, that the terms of Lowrie's proposal were inadequate. In addition, as previously announced, the company's letter of intent with Rick's Cabaret International, Inc. (Rick's), pursuant to which the company agreed to merge with Rick's, expired on March 31, 2010 and no merger agreement or other definitive documentation was entered into by the parties. Accordingly, the services of the Special Committee were no longer needed.

VCG also said its board of directors has authorized the repurchase of up to $1 million of the company's common stock. The program, part of a $10 million repurchase plan that was approved in July 2007, calls for the purchases to be made in open market or in privately negotiated transactions from time to time. The purchases are subject to market and business conditions, levels of available liquidity, cash requirements for other purposes, applicable legal requirements, and other relevant factors.

VCG Holding Corp. is an owner, operator, and consolidator of adult nightclubs throughout the United States.

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