Venu Holding Corporation 0 Earnings Call

Hello, this is Craig Brelsford with Red Chip Companies. Thank you for joining today's event with Venu Holding Corporation, which trades on the NYSE American under the symbol VENU. Joining us today is J.W. Roth, founder, chairman, and chief executive officer of Venu. We will begin with a brief presentation in a moment, then we'll open the event to your questions. Welcome to everyone joining us today on X, YouTube, LinkedIn, and other social media platforms. To submit your question, we invite you to join us on Zoom. Use the posted event link. Once in Zoom, click the Q&A button at the bottom of your Zoom window and type your question into the text box. Before we begin, please allow me to read the Safe Harbor statement. This call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

All statements pertaining to future financial and/or operating results, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management, constitute forward-looking statements. Any statements that are not historical fact should also be considered forward-looking statements. Of course, forward-looking statements involve risks and uncertainties. J.W., please go ahead. Thanks for having me.

Again, I'm J.W. Roth. I'm the founder, chairman, and CEO here at Venu, and the video that you just watched is the snippet of what we do and what we build. Currently, we are the fastest-growing live music venue builder in the U.S. Whether you follow our space or not, it's important that you realize music is roaring. Live is roaring. If you look across the last 10 years, live music, ticket demand, and fan demand is all-time high. Every year, it has beat the previous year's record. At the exact same time, the supply of new artists and new genres of music have never been higher. We find ourselves at a point in time where we are in an industry where supply and demand are both at their all-time highs.

I had a top opportunity to speak at Billboard this year. When I did, I talked about just the new genres of music and what the supply side of music looks like. At the same time, I have an opportunity to speak all the time about what the demand side looks like. That's where the opportunity lies. If you look at sort of where live music is today, it's in a lot of ways like the world that you live in, where supply and demand, they meet each other in your world in the stock market. In the world that I live in, supply and demand meet each other at the venue. That's where artists meet fans, and that's where fans meet artists, and that's where they build their relationships. Well, today, the average music venue in the U.S. is 41 years old.

It was built back before the demand of today's fan. When you think of the NFL or Major League Baseball, you think about what they have done to sort of meet the demand and the desire of the fan. Elevated food and beverage, rideshare. Think about that. Back when the average music venue was built, there was no such thing as Lyft or Uber or rideshare of any kind. Today, it represents 40% of the way people come and go from live events. The music industry has just fallen behind, and that's where I saw the opportunity to step in and be massively disruptive in this space. Let me start by just giving you a little bit of my background. I do not come from the hospitality or entertainment space. I'm just a big music fan, and I've been a massive music fan my entire life.

Live music has sort of been my passion. My background in business has been, I am the founder at Roth Brands, Culinova, and Whole30. We are the third-largest prepared food manufacturer in the United States. We service every grocery store in America every day in some way or another, and we're the number one chilled protein manufacturer in the U.S. I sat down with my family five years ago, all of our partners at Kroger and Costco and Walmart and everybody else, I said, "Look, I've got another one in me." I was only 58 years old at the time, I said, "You know what?

I can go out and build another company just as big or bigger than this one, and I can do it in a space that is absolutely ripe for disruption." I took a year, I transitioned about 20 of my people, key folks, out of Roth and into a new company called Venu, with the whole idea of going out and disrupting this space by building approximately $6 billion or $7 billion worth of new venues and routing them. It took about a year to get everybody transitioned out, at that point, we launched Venu. First thing I did is I sat down with BCA in Atlanta. BCA is one of the best architectural firms, I think, in the country. They have participated in the Sphere. They have participated in the new stadium in Vegas. They did Mercedes-Benz. They really understood and understand from a fan's perspective how venues should operate, whether they're stadiums, ballparks, or music venues.

I sat down with them, I said, "Listen, I want you to take what's in my mind, in my head as a fan, and help me put on paper what an outstanding amphitheater or music venue would look like." They did. We put it all together. We incorporated almost everything that you could imagine from the fan standpoint of what an over-the-top, world-class venue would look like. When it got all done, there's just no way I could've gone out and raised the capital to build it. It was well over $100 million. It was the coolest venue on paper you've ever seen. There was no way I could go out and raise money to build it.

I just did it myself. I built it right here in Colorado Springs, and it has won almost everything. Billboard-nominated, picked up by The Wall Street Journal, VenuesNow. You name it has been recognized as one of the world's greatest outdoor music venues. The Ford Motor Company came along about halfway through the project and paid the highest naming rights at that point in time to date to put their name on it, and it has gone on to be a fantastic venue for us. At the end of the day, I was going to have to figure out how I was going to finance these. Today, we have about $1.5 billion-$1.6 billion worth of construction going on throughout the U.S. in five markets on massive next-generation venues. That would have never happened unless we could figure out how to finance these.

I started by taking a page out of the playbook of the NFL and Major League Baseball. I always felt like they did a really good job of understanding how to finance something that was world-class. They started with public-private partnerships. They engaged the municipalities where they were building. I wanted to do the same thing. Number 1 firm in the U.S. that builds public-private partnerships is the tax firm Ryan LLC out of Dallas, Texas. They represent most of the municipalities in the U.S. They've done deals with the NFL, Major League Baseball, and almost every other sort of entertainment entity. I sat down with them early on, and I said, "Look, this is what I want to go do.

I want you to represent me the same way you've represented NFL teams and help me put together public-private partnerships in the municipalities where I'm going to route these venues." They did. Over the course of the last three years, we have put five public-private partnerships together in which we are building. Those public-private partnerships represent economic value of about $10 billion and fund 40% of all of our infrastructure and the building of our projects. Each one of these municipality agreements include three things. It includes the land. They always contribute 100% of the property that we build on. 2, tax abatements and rebates. They abate the property tax and rebate the sales tax.

At the end of the day, when it's all said and done, there's a cash component where they put in cash to help build out the site, run utilities, change the roads, do all of the things that you need to do in order to put a shovel in the ground. Even so, these are expensive to build. They're between a quarter of a billion and a half a billion dollars each to build. I needed another sort of plan, because financing these is not something you walk down to the bank and do. You have two choices. You can either use equity or you have to use debt. I found a way to build these using fractional ownership. Now here's where I got the idea.

When you look at a hotel builder or developer, most of them today that build luxury hotels like The Ritz-Carlton or Four Seasons, what they do is they take a piece of ground, just like the municipalities contribute to us. They stick an entity on that piece of ground. They go and they pre-sell condominiums up at the top of what is going to be their hotel. Those condominiums offset the cost of their infrastructure to the tune of about 40%-45%. I thought, I'm going to do the exact same thing. I'm going to sell condominiums inside of our amphitheaters. If it works, it will pay the balance of building these projects out. Our amphitheaters are built under the same financial structure as a condominium or hotel building. Our condominiums are Fire Pit Suites.

I thought to myself, if I could sell these suites the same way developers sell condominiums, it will pay the balance and we will drive our balance sheet, and we will build a business with almost zero debt. I took my backyard. I'm a music guy, right? My backyard is a little different than most people's backyard. My backyard, I have a small venue, seats about 50 to 75 people, I've had some of the greatest bands in the world, because of the relationships, play my backyard. In my backyard, I have, I think, the world's largest residential Fire Pit. People love to sit around my yard, and they love to listen to music, and we've got a great bar, and it's just a really inviting place.

I thought to myself, if I could take my backyard and just squish it down and make Fire Pit Suites that are just small backyards, I'd sprinkle them around in our Venu, and I would sell those. If they sold, I would be able to pay the balance of building these venues out. That's what I did. I put 132 of them inside of the Ford Amphitheater. In a course of 22 weeks, I sold every single one of them. It did exactly what I thought it would do, which is cover the majority of the cost of construction and 40%-45% of the value of the final project. Today, we sell those in every single market we're in. We crossed a quarter of a billion dollars in sales here about two or three weeks ago.

We sell close to $1 million a day on a 20-day month currently in our projects. What it is doing is it is offsetting our construction costs. Now that I had, at that point, sort of figured out how I was going to build these, we started the projects. Today, like I said before, we've got about $1.5 billion to $1.6 billion or so in construction that we'll be finishing up. First one's finishing here in about 90 days. It's in Broken Arrow in the Tulsa market, 12,500 seats. It is a beautiful venue. It'll produce about $25 million or so in annual EBITDA. The next venue that we'll open will open about 150 days after that. It is the largest fully seated music venue in the world. It's in Dallas, Texas. It's multi-seasonal, operates year-round, just like all of ours do.

Multi-configurational. That's important because if you look at sort of the old-day amphitheaters, they're not multi-configurational. There's one configuration, 10,000 or 20,000, or whatever it is, and half of that's on the lawn. Just doesn't work in today's world. All of ours operate. Think of the Sphere in terms of content and think of the Sphere in terms of how it operates. Ours is the same way. Operates year-round, on top of being multi-configurational with varying configurations, it's also omni-content. About 50% of what we do is music, but the other 50% is, again, I'm going to use the Sphere as an example. The Sphere's type content, movies, theater, AI-generated content. Think of a Bob Marley experience or a Prince experience or a Whitney Houston experience.

That is, documentaries that live in residency inside of these venues. The next one is McKinney. 20,000 fully seated, multi-seasonal, multi-operational. Followed by El Paso, follows that by about 180 days. Every 180 days, a new one opens. After El Paso comes Houston. All of these are specifically located in routes so that we can route the venues. The second piece of this is, after the development and the building of the venues themselves, is how do you operate these? I come from a business background. I've built businesses all my life, and I built Roth to what it is today. I didn't feel comfortable actually operating these venues, at least at this point in time. I wanted to de-risk the business.

De-risking the business meant that I was going to build a business that we were really the landlord owning the Venu, and then we were going to go partner with a tenant. That tenant being Live Nation, AEG, Ticketmaster, Access, Aramark, all of the sort of world-class operators and vendors that manage and supply venues like ours. I sat down and I didn't want to just be a landlord. I wanted to participate in the business. I created a participatory lease, and this is what it looks like. I go to Live Nation, or I go to AEG here in Colorado Springs with Ford, for example, and they become my tenant. What that lease looks like is they pay me 50% of all of the profits, they pay a base rent, and then they operate the venue.

I carve out of that deal all of the sponsorship and all of the naming rights. At the end of the day, we take very, very little operational risk when we operate with our partners in that way. That is the way we built the entire business. Today we have, with Ryan, about 40 to 41 markets that are in the pipeline. We will add about 2 to 3 markets per year as they come out of entitlement. Each of these venues will produce between $25 million and $30 million a year in stabilized annual EBITDA. We are on a plan over the next 27 months to complete, or have out of the ground, 16 venues. That kind of gives you a sense of what we do. We are by far the space leader in these new venues and in building them.

Go one step further, when I started this from the very outset, I wanted to be public. I wanted to be public for a couple of reasons. Number one reason was I wanted to be fan-owned. It was important to me. Obviously, the business is fan-founded, but I wanted to be fan-owned. I sat down with the New York Stock Exchange. I put together the minimum that I had to raise because we didn't need the capital at that point. I put a deal to raise the minimum in an IPO and take the business public as a way to ultimately give the fan the opportunity to own the business. What I didn't realize at the time is the disconnect between our balance sheet and our public-private partnerships.

For example, today our stock trades with about $150 million-$160 million market cap, even though we have about $700 million in market-to-market assets on our balance sheet. Why is that? Here's the reason. Every time a municipality contributes a piece of property to our company as part of a public-private partnership, it goes on our balance sheet at zero because under GAAP accounting, everything that is contributed goes on the balance sheet at basis. Because we don't pay for the land, it's actually contributed to us, it sits on our balance sheet at zero. Today we have hundreds and hundreds of millions of dollars of assets sitting unencumbered, for the most part, on our balance sheet, and they're sitting there at zero.

Over the course of the next year or so, we are going to begin the process of building 8-K programs that every time we build a new venue, we are going to come out and talk about the appraised value of these assets. At the exact same time, we're going to be launching the venues and launching the programming. Again, we have Broken Arrow coming here in the fall. We're about 90 days out. We're booking that venue now. We'll have McKinney coming on around March 1st or so of this next year. We're also booking that venue right now. Followed by El Paso, Houston, and Chattanooga. With what we have in line right this minute, we will be in excess of $100 million a year in EBITDA with the handful that we have right now under development.

There's a good sense of who we are. I'd love to spend the rest of the time answering your questions, and talking about our business. Couldn't be more excited. I'm going to tell you right now, you'll never find a company that's more undervalued today than we are. I think there's really an opportunity over the next 90 days to stick your toe in the water if you're so inclined. I do know one thing. After we start opening these venues, our stock will not be sitting at $2.50 a share. I appreciate you taking the time to listen to us, now we'll open it up for questions.

Thank you, J.W. To submit your question, please click the Q&A button at the bottom of your Zoom window and type your question into the text box. We can only take your written questions today. J.W., you've gone from $8 million to more than $460 million in assets in about two and a half years. For someone new to the story, what are you actually building and why is it different from a normal amphitheater? What content should we expect to see in these venues?

Let me start with our balance sheet and those numbers. What we did, we started with $8 million. We grew it to $400 million, under GAAP accounting. That's actually cash. Hard assets that were acquired along the way. The fact of the matter is that $400 million on a mark-to-market basis is closer to about $720 million today, and as we open these, will grow to in excess of $1.24 billion. What is so different about what we build is the venue itself, right? When you think of an amphitheater, and I hate that word. I'm working diligently to change the industry so it's not that word. When you think of an amphitheater, you think of a muddy grass, you think of an outdoor, you think of sort of minimal services. What we do is very different than that.

Think about a new gen amp married to the Sphere. What we build is multi-seasonal, so that operates year-round, just like the Sphere does. Multi-configurational, so it changes with walls inside from being 4,000 to 8,000 to 20,000 in different capacities. The biggest piece of what we build is omni-content. When you think of yesterday or yesterday's amphitheater, you think of music, you think of 40 or so shows a year. You think of that sort of centric element. When you think of what we build, we build something very different in the form of omni-content. Only about 50% of what we do is music. The other 50% of what we do are movies, theater. The utilization of our buildings is so different than yesterday's amphitheater. It also is what changes the financial model too.

From an amphitheater that would earn $10 or so million in EBITDA on a really good year, you can have a venue like ours, like we're building on our 12,500 seaters, that'll generate $25 million a year in stabilized EBITDA because of those three metrics being multi-seasonal, multi-configurational, and omni-content.

What is the current expected closing timeline and remaining conditions for the $150 million CPACE financing, and will it fully cover the remaining construction costs for both Broken Arrow and McKinney through opening?

Yes. We expect our closing to be here in the next six weeks with CPACE. The last thing on the agenda is the final appraisal. We believe that will be in tomorrow, Monday at the latest. That is on Broken Arrow. About four weeks after that, we should receive the final appraisal on McKinney. CPACE is roughly 35% of the total project value in the form of that appraisal, and we believe we're significantly under that number. I look at it, and most of the boxes are checked with the exception of the appraisal.

What is the current fully diluted share count, including preferred warrants and any ATM capacity, and what is management's expectation for net share issuance over the next 12 to 18 months?

We got 102 million fully diluted out today. 58 of that is issued and outstanding. The balance of that is in the form of warrants and options. Average price there is about $5.30. When those are exercised, that will generate about $140 million in additional cash that will come into the company. We've got a really clean balance sheet. I am working diligently to not do another equity offering. It's not to say that we never will, but it will be very unlikely with the usage of PACE. The reason that I've put these bridge financings together is to avoid doing another equity raise, simply because I believe that between PACE and the exercise of these warrants over time, we will not need any additional equity capital.

Your triple net leaseback model has quickly become a big part of how you finance venues. How does it actually work, and why is it central to your expansion plan?

Yeah, it's super cool. Best way to understand how it works is to go to our site. I did about a 20-minute video that walks you through the entire process. I can give you in just short order here how it works. Think of it as condominiums in a five-star hotel. We go in and we sell suites just like condominiums in a five-star hotel. We turn around and lease them back. We use those tickets to sell premium-wise. Let me give you an example of what that looks like. When we lease a suite back, it costs us roughly $180 or so per ticket per show. We generate about $350 per ticket per show. The sale leaseback model is extremely accretive to our P&L. The sale leaseback model is extremely accretive to our balance sheet.

In addition to all of that, it reduces our occupancy cost because we're not doing a sale leaseback of the property itself. It's an incredible opportunity for us and an incredible financing tool. On your way home tonight, stop by any bookstore or magazine rack and pick up a Billboard Magazine. The back cover of Billboard this month is about what we do. Here in a couple of weeks or so, there'll be some additional articles coming out in some interesting publications about it. You can pick up a Billboard on the way home.

How does multi-configuration omni-content year-round apply to Colorado Springs, which wasn't built under that model? Are changes coming in Colorado Springs?

No, changes won't be coming in Colorado Springs. Colorado Springs was built as a proof of concept for two things. First, I wanted to understand the sale-leaseback and fractional ownership. I built Colorado Springs to understand how Fire Pit Suites would work, sort of what the market would bear in terms of their payments, and the valuation of those. I wanted to test premium. Right? We built Aikman Club in Colorado Springs. We built all of the VIP sections in a separate building at the venue. Those are the two things that we tested there. We did not test the multi-configurational or the multi-seasonal. Colorado Springs is an interesting place, right? Where you're sitting, right across the highway from the Air Force Academy, you're sitting at the base of Pikes Peak. You got a beautiful setting.

I built it so that it would be complementary from a routing standpoint with our partner, AEG, and their venue, Red Rocks. It was built to test two models that we've had great success with. The Ford Amphitheater's been profitable since day one, we're very, very proud of that. The other thing we wanted to test with that is naming rights, right? All of our venues are built on major thoroughfares. Here in Colorado, we're built on I-25. In Broken Arrow, we're built on the thoroughfare, and in Dallas-Fort Worth, we're at 121 and 75, all major interstates that ultimately allow you to monetize the venue beyond just the content, and that's in the form of naming rights.

With CPACE and the Ryan Bridge financing, it seems as if you're moving toward debt over equity. Is that the plan going forward, and does that mean less dilution from here?

Absolutely. That was the whole plan here. I had to get to a point, though, that I could do it. Early on, when you're building these, you don't have any other choice. You have to use equity because that's not an option. CPACE is not an option. There just aren't any other options. You're stuck with equity. At this point in time, we have three options. We have equity, we have sale-leasebacks of the properties themselves, and then we have the opportunity to engage in CPACE. In my sort of game plan, I am looking at equity as an emergency hatch only. I am going to concentrate all of our future financings and bridges using either debt or CPACE. The reason we can do that is because we built all of this debt-free.

We do not have a single piece of debt on any of our outdoor amphitheaters, with the exception of our small bridge. You've got $700, $800 million of unencumbered properties. Now is the time to start monetizing those assets in a way to reduce dilution. It's also the reason I'm one of the- Can you talk about- Go ahead.

Oh, excuse me. Please go ahead, J.W.

No, I was going to say that it's why you see me filing my forms because I'm a buyer of the stock because I just believe that right now is the time that that should be happening. Anyway, next question. Can you talk about your relationship with Troy Aikman and the Aikman Club in your venues?

Yeah. Troy's a friend. I was an original investor in EIGHT, the beer company. As a result of that, we became friends. Troy then became a significant shareholder and investor in Venu. As a result of that and a result of our friendship, we decided to enhance both businesses. We are building EIGHT and Aikman Club in all of our venues to sort of raise the visibility of the EIGHT Beer Company and Eight Brewing Company. At the same time, Troy is providing some endorsements for us that will help us from a visibility standpoint with triple-net investors. It's just been a great relationship and one that we have fostered both as a friendship and as a business relationship.

It seems as if over the last year, you have de-risked the business with partnerships and securing financing. What is the biggest risk in this stock from your perspective?

At the end of the day, from the get-go, it was always construction risk, right? Inflation as it relates to construction. Those risks were real, and they were front and center as I started to build this business, and that's why we went to GMP contracts. Today, we eliminated that risk. We are now full GMP contracts. The other risk that existed from the beginning were, would fractional ownership sell? Would folks buy Fire Pit Suites? We've crossed that bridge, and it's been a massive success. You can read about it anywhere, whether it's in The Wall Street Journal or VenuesNow or Billboard Magazine or wherever. Everybody has carried that story and why that has been so successful for us. The third piece is content, right?

Content is always a risk in the venue space, and that is the reason that I have worked so diligently to build the relationships with Live Nation, AEG, LiveCo, Opry, and just everybody else that we work with, Peachtree Entertainment, in building content relationships because it's important, right? You can be an amphitheater and be the greatest amphitheater in the world, try to run it yourself, and maybe on a spreadsheet, it might look good trying to run it yourself. The best and the fastest way to de-risk the business is partner with world-class organizations that can put great acts on your stage.

At the higher 2026 Fire Pit Suite pricing, what percentage of total construction costs for a typical new venue do you now expect suite ownership sales to cover?

On a 12,500 seat, suite sales will roughly run $150 million, maybe $151 million, right at that number. Cost of building a 12.5 all-in FF&E, lock, stock, and barrel, $175 million. $150 million comes from the sale of Fire Pit Suites on $175 million build. We'll bring in about $50 million in CPACE on every project, realizing a $25 million development profit.

The Venu community, as well as artist community, is very excited about your efforts and success. Wall Street has not gotten on board with such enthusiasm yet, other than a few like Shah Gilani. What efforts are you and your team engaging in to get Wall Street as pumped as the rest of us?

Well, at the end of the day, I concentrate on building our business, right? Every morning I get up, I don't look at the stock until I get rolling in the day. The best way for me to build our stock is to build our business. I'm going to build our business one chunk of $25 million in EBITDA at a time. That first one's going to open here in 90 days. I am hell-bent on building $175 million-$200 million in EBITDA over the course of these next 27-30 months. As we do that, the stock will catch up. I'm a buyer in the stock. Now is the time people should be buying the stock. At the end of the day, I'm not the promoter that's going to go promote the stock.

My job is to build this business, and this stock is going to take care of itself. Here's the way I look at it. Today, I've got $8 a share in mark-to-market assets on my balance sheet. I've got $5 a share in GAAP assets on our balance sheet. Stock trades at $2.40. People are going to start figuring that out. Again, it's why I'm buying the stock.

What's the pitch to a city when you walk in the door? Why does a municipality want a Venu amphitheater?

It's economic impact, right? When we walk into an MSA or into a community, there's usually four or five cities in that community that are all trying to get us to build in their city. They all have the same three things. They all offer us real estate, they all offer us cash, and they all offer us tax incentives. The reason they do that is because there is a massive amount of upside to them, about 40 to one. For about every $100 million that they give us in incentives, they realize about $4 billion in economic impact. When you look at a project like that, we are really a tide that rises all the boats. When you put on your municipality glasses and you look through those lenses, you see Venu as an economic driver.

When we show up, you might give us $100 million to be there, but what we're going to build is a machine or a tide that creates billions of dollars in other economic impact, namely other taxes from businesses that build around us. When we show up, so do hotels, so does Topgolf, so do racetracks, so do restaurants, all of the things that drive revenue for that municipality.

With everything in the pipeline across Oklahoma, Texas, and Tennessee, which openings are the ones investors should really be watching?

If I was an investor, I'd be watching Broken Arrow in Tulsa. It opens here 90 days or so, and it's really the gold standard, and it's really the proof of concept that we will roll out in all of the other markets. What we're building in Tulsa, we're also building in El Paso, we're also building in Houston, and we're also building in Chattanooga. Investors are going to love watching Dallas, Fort Worth, and McKinney open here in March, but it's a granddaddy and it's a monster, and it's not the standard of what we build. It will be the biggest that we've ever built, and it will be an incredible world-class, over-the-top Venu, probably best in the world.

If I was an investor, I would be watching what we're building in Tulsa simply because that is the standard build that we will be building over the next sort of 20 or so venues.

Beyond the venues you've announced, how deep is the pipeline and how fast can you actually build?

We can build three or so a year. We have 41 municipalities in the pipeline. We will be announcing five more this year. That doesn't mean we will build five. We will probably build three. The pipeline is, I call it the bench. The bench is deep. Of the 40 or so in the pipeline, 20 of them will most likely get built.

Can you elaborate on the usage of McKinney for events like The Sphere? How many of these non-traditional concert type events per year? How many concerts per year?

You're looking at about 50 to 60 music events a year. Of those, think of half, or 30 or so, being your traditional routed tours, big bands playing 20,000 capacity nights. The other 50% will be lower capacity, will be off-season. Think of off-season being 30 days or so after Labor Day through 30 days prior to Memorial Day. That'll represent about 50% of the other musical pieces. 50% of the overall content will be non-music, will be documentaries, will be theater, will be comedy, will be movies, will be the types of content that you would see if you were looking at the lineup at The Sphere.

You've partnered with both Live Nation and AEG. Aren't those two direct competitors? How does that work? They are, they're all sort of market specific, right?

A lot of them are genre specific. For example, you look at LiveCo. LiveCo is a partnership of ours. That's a lot of Christian artists. Peachtree, mostly country artists. AEG doesn't participate in a lot of Oklahoma or Texas. Live Nation is very strong there. AEG is super strong in Colorado. Think of Fiddler's Green, Red Rocks, the Ford Amphitheater here. While they are competitors in what they do, a lot of their competitiveness is in certain geographic areas throughout the country and in certain genres of music when you get into the smaller or less prominent promoters like Peachtree, like Opry, those kinds of competitors in the space.

Is there an event lineup for Broken Arrow that you can share yet?

There is, but I can't share it. We're booking shows there as we speak. The shows that we're currently booking are late November, early December, simply because I'm too afraid to book October or November until I actually have an absolute opening date. Right now, that opening date is going to come late October, 1st of November. I'm too chicken to book it. We are booking in that market, but we're booking late November, early December right now. Same for McKinney. We have 12 major shows that have holds starting in May. I believe we're going to open that venue in March, but right now I'm not putting holds on in March simply because, again, I'm too chicken.

J.W., we're running right up to the top of the hour. Would you like to send us off with any closing remarks?

I appreciate everybody taking the time to listen to us and to think about what we're doing. I'd love to have you as a shareholder. I can promise you this, we are going to build a world-class organization. It is going to be world-class and over the top in every way. You can count on our team working diligently for you as a shareholder. I can tell you we're going to grow our balance sheet, and we're going to grow our EBITDA, and you will not make a mistake in dabbling in our stock today. I'm not here to promote our stock. I'm here to tell you what we're going to go do, I can tell you I'm a buyer of our stock. If you are, I appreciate you, and I thank you for doing it, and I can assure you you're going to do well.

Thank you very much, J.W. For more information about Venu, reach us at 1-800-RED-CHIP or email us at venu@redchip.com. Please visit the information page RedChip created for Venu. It's venuinfo.com. There you can sign up for news alerts on Venu. Please watch Small Stocks, Big Money, RedChip's program featuring exciting small cap companies on CNBC every Sunday morning at 11:00 A.M. U.S. Eastern and on Bloomberg USA every Saturday night at 7:00 P.M. U.S. Eastern. Finally, join our next webinar with OBOOK Holdings tomorrow at 11:00 A.M. U.S. Eastern. Register for tomorrow's webinar and for all RedChip webinars at redchip.com/events. Thank you to our many participants today, and thank you, J.W.