In a bid to pursue the broad entertainment space, little VGTel, Inc. (OTCPK:VGTL) said Wednesday that it has penned an agreement to buy Don't Tell Supper Club in Dallas, Texas.
A new dining and nightlife concept, the flashy, two-story supper club shifts from a five-Star restaurant into a 10,000-square-foot nightclub at 11 p.m., complete with pulsing music and a stage that features any variety of over-the-top acts, including burlesque and aerialist shows.
Founded by nightlife industry vet Avi Adri, the unique club has won Zagat's 2018 Diner's Choice Award as "#1 Hottest New Restaurant" and been named a "Ten Best" "Downtown Dallas' Hidden Party Gem" by USA Today.
Priding itself on creating a Las Vegas-like nightclub setting in Dallas, the venue opened in July 2017 and generated almost $3 million in revenue in its first 12 months of operations.
"In establishing the unique concept for Don’t Tell, we wanted to create an experience like no other, an environment where patrons can come and eat be entertained and remain with us throughout the night," said Adri in today's news release on the acquisition deal.
"This is why our mantra is Eat…Stay…Play," he added.
No terms on the acquisition were disclosed, not even if the letter of intent outlining the purchase was binding, much less the acquisition price or payment structure. Filings with OTC Markets show the company to have $9,712 in cash on hand at the end of June.
VGTel has largely been paying the bills through convertible debt. From the latest filing: "The company issued a total of 46,000,000 shares of common stock in order to satisfy conversions of both principal and accrued interest under various convertible promissory notes during the three months ending June 30, 2018.
Richardson, Texas-based VGTel was originally focused on building and operating scanning laboratories to convert 16mm, 35mm and 70mm content to ultra-high definition content, which it then would market. Four films were converted with limited marketing success, which led to re-thinking the business model to endeavor into different areas of entertainment. The company will still look to generate revenue from the converted content, but not convert any additional media.
Investors are responding unenthusiastically to the potential buyout of Don't Tell Supper Club, as judged by shares slipping 1.8% to $0.0028 with a couple hours left in the trading day.
Based upon 514.57 million outstanding shares, the company is sporting a market cap of just $1.47 million.
