IPO Company Profile
SEC Filings | Peer IPO Companies
Havana Group, Inc. The
4450 Belden Village Street, N.W., Suite 406, Canton, OH 44718 * (330) 492-8090

The company is a direct marketer which publishes a catalog selling pipes, tobacco and smoking products.

Primary Underwriting Group
ManagerTierPhone
VTR Capital, Inc.Lead Manager (212) 422-6930

Filing Information
Employees:1 Retail: SIC 5999
Type of Shares:Common Shares Filing Date:2/9/98
U.S. Shares Filed:460,000 Filing Price:$6.00
Non-U.S. Shares Filed:0 Offering Amount: $0
Primary Shares:460,000 Expenses:$434,000
Secondary Shares:0 Post-IPO Shares:1,860,000

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Lester Morse, P.C.
Bank's Law Firm: Mintz & Gold, LLP
Registrar/Transfer Agent: Harris Trust Company of NY

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
9 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Audited
Income
Balance
Sheet
12/31/96 9/30/97 9/30/96 9/30/97
Revenue:$1.66$1.01$1.22Assets:$1.11
Net Income:-$0.12-$0.02-$0.12Curr Assets:$1.02
EPS:-$0.12-$0.02-$0.12Liabilities:$0.15
Prior EPS:-$0.06Curr Liab:$0.87
Cash Flow/Oper:$0.03-$0.18-$0.07Equity:$0.96
Cash Flow/Fin:-$0.04$0.19$0.06Cash:$0.01
Cash Flow/Inv:-$0.01Working Cap:$0.15

Competition
The Company believes that there are currently approximately 1,000 to 1,500 full line smoke shops in the United States. While certain retail smoke shops have adopted catalogs and mail order techniques as a method for creating additional revenue, the Company believes that the number of retailers involved in this area of distribution to be relatively small in number. The Company has identified three companies that are involved in mail order as a primary method of sales and distribution, and believes that this constitutes the Company's primary current mail order competition. The three identified competitors, which include 800 JR Cigar, Thompson's Cigar and Fink are all mail order cigar businesses that are substantially larger than the Smokeshop. Management believes that the largest competitor in the mail order cigar business is 800 JR Cigar. Competition in all aspects of the Company's business is intense with many competitors having more experience and greater financial resources than the Company. No assurances can be given that the Company will be able to successfully compete in all aspects of its business in the future.

Use of Proceeds
The proceeds from the proposed offering will be used for the purchase of inventory, humidor construction, the repayment of debt and stock dividends and working capital and general corporate purposes.

Additional Underwriter Compensation
Additional compensation of $46,000.
Warrant to purchase 46 shares/units at a nominal price.
Exercise price of $9.00 for 4 year(s), 1 year(s) from .
$100,000.00 consulting agreement for 2 year(s).

Warrant Information
# of Units:460,000
Unit Ticker: - Unit Price:
Warrant Ticker:ZZZ Warrant Price:
Warrant Exercise Date: Warrant Exercise Price:
Warrant Expiration Date:
Warrant Detachable: Yes Warrant Detach Date:
Warrant Callable: No
Unit Composition: 1 Common Share + 2 Class A Warrants
Warrant Entitlement: 1 Common Share


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