VCG Holding chairman and chief executive Troy Lowrie’s proposal to take the strip-club operator private for $2.10 a share has been deemed “inadequate” by a special committee of three board members, the company announced Wednesday.
VCG also disclosed in a regulatory filing that the Lakewood-based company faces a proposed class-action lawsuit connected to the offer. The lawsuit, filed in Jefferson County District Court, alleges Lowrie “has conflicts of interest with respect to the proposal.”
The parties behind the offer, which include VCG chief operating officer Michael Ocello, control 37.7 percent of the voting stock, according to a separate regulatory filing. It states that the group “will not agree to any other transaction involving their stake in the company.” The offer was announced in November.
VCG stock closed Wednesday at $2.18, up 9 cents. With 17.3 million shares outstanding, the company has a market capitalization of nearly $38 million.
The board members on the special committee are George Sawicki, Kenton Sieckman and Carolyn Romero.
VCG owns 20 gentlemen’s clubs across the country, including the Diamond Cabaret and Penthouse Club in the Denver area.
Andy Vuong: 303-954-1209 or avuong@denverpost.com
