Capital Beverage Corporation
Ticker:CBEV 1111 East Tremont Avenue
Exchange:NASDAQ-Small Cap Market Bronx, NY 10460
Industry:Wholesale (SIC Code 5181) (718) 409-2337

Offering Information
Type of Shares:Common Shares Filing Date:8/12/96
U.S. Shares:800,000 Offer Date:7/18/97
Non-U.S. Shares:0 Filing Price:$5.05
Primary Shares:800,000 Offer Price:$5.00
Secondary Shares:0 Gross Spread:$0.50
Offering Amount: $4,040,000 Selling:
Expenses:$345,000 Reallowance:
Shares Out After:2,040,909

Primary Underwriting Group
ManagerTierPhone
Investors Associates, Inc.Lead Manager (201) 646-9060

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$6.93$2.50$1.72Assets:$2.96
Net Income:-$0.31$0.03-$0.09Curr Assets:
EPS:-$0.25$0.01-$0.07Liabilities:$1.21
Prior EPS:-$0.19Curr Liabilities:
Cash Flow/Oper:Equity:$1.75
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company acquired from Consolidated Beverage Corporation the right to become the exclusive distributor for certain beer and malt liquor products manufactured by Pabst Brewing Company in Manhattan, Bronx, Queens, Staten Island, and Westchester County. The company, a Delaware corporation, was organized on December 5, 1995. The company acts as a master distributor for Pabst Products within the Territory, subject to policies and procedures determined by Pabst, so that all in-Territory orders for Pabst Products flow directly through the company. The company has established three geographical sectors within the Territory and entered into arrangements with three licensed independent depots to distribute the Pabst Products throughout the Territory. Except for company accounts, each depot is responsible for its own invoicing, employees and distribution of Pabst Products within its geographical sector. In June 1996, the company entered into an agreement and plan of merger with Vito Santoro, Inc., a New York wholesale and retail beverage distributor doing business under the tradename Caribe Beverages.

Use of Proceeds
The proceeds from the proposed offering will be used to provide working capital for acquisition of inventory and licensing of additional brands, to acquire beverage depots, to implement the company's marketing plan and for general corporate purposes.

Warrant Information
# of Units:800,000
Unit Ticker:CBEVU Unit Price:$5.05
Warrant Ticker:CBEVW Warrant Price:
Warrant Exercise Date: Warrant Exercise Price:
Warrant Expiration Date:
Warrant Detachable: Yes Warrant Detach Date:
Warrant Callable: No


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