800-JR Cigar, Inc.
Ticker:JRJR 301 Route 10 East
Exchange:NASDAQ-National Market Whippany, NJ 07981
Industry:Wholesale (SIC Code 5194) (201) 884-9555

Offering Information
Type of Shares:Common Shares Filing Date:3/14/97
U.S. Shares:3,000,000 Offer Date:6/26/97
Non-U.S. Shares:0 Filing Range:$14.00 - $16.00
Primary Shares:3,000,000 Offer Price:$17.00
Secondary Shares:0 Gross Spread:$1.19
Offering Amount: $45,000,000 Selling:$0.72
Expenses: - Reallowance:$0.10
Shares Out After: -

Primary Underwriting Group
ManagerTierPhone
Prudential Securities IncorporatedLead Manager (212) 778-5420

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Morgan, Lewis & Bockius
Bank's Law Firm: Stroock & Stroock & Lavan
Auditor: Ernst & Young

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
10 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 10/31/96 10/31/95 10/31/96
Revenue:$152.69$155.28$121.93Assets:$42.64
Net Income:$2.39$9.26$1.70Curr Assets:
EPS:Liabilities:$21.29
Prior EPS:Curr Liabilities:
Cash Flow/Oper:Equity:$21.35
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is one of the largest distributors and retailers of tobacco and tobacco related products in North America. The company's primary products consist of premium cigars, mass market cigars and cigarettes which are distributed to retail and wholesale customers. Management believes that the company ranks as the largest retailer of brand name cigars in the United States. In addition, the company is the largest customer for many of the world's leading cigar manufacturers, including Consolidated Cigar Holdings Inc., General Cigar Holding, Inc., Swisher International Group, Inc. and Villazon & Company, Inc. The company believes that its success is due, in part, to its ability to purchase in large quantities from a broad range of suppliers, thereby serving its retail and wholesale customers as the leading source for competitively priced, high-quality, nationally branded and proprietary brand premium cigars and other tobacco products.

Use of Proceeds
The proceeds from the proposed offering will be used to finance development, construction and other costs related to a new warehouse, new stores and store renovations; to finance expansion of direct mail operations; repay long-term debt, working capital and for general corporate purposes.

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