UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
FORM 3
OMB APPROVAL
OMB NUMBER: 3235-0104
Expires: September 30, 1998
Estimated average burden
hours per response........0.5
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section
17(a) of the Public Utility Holding Company Act of 1935
or Section 30(f) of the Investment Company Act of 1940
(Print or Type Responses)
1. Name and Address of Reporting Person*
Lion Advisors, L.P
-----------------------------------------------------------------------------
(Last) (First) (Middle)
2 Manhattanville Road
- -----------------------------------------------------------------------------
(Street)
Purchase NY 10577
- -----------------------------------------------------------------------------
(City) (State) (Zip)
2. Date of Event Requiring Statement (Month/Day/Year)
09/01/99
- -----------------------------------------------------------------------------
3. IRS or Social Security Number of Reporting Person (Voluntary)
- -----------------------------------------------------------------------------
4. Issuer Name and Ticker or Trading Symbol
Brooke Group Ltd.
- -----------------------------------------------------------------------------
5. Relationship of Reporting Person(s) to Issuer (Check all applicable)
Director x 10% Owner
--- ---
Officer (give title below) Other (specify below)
--- ---
- ----------------------------------------------------------------------------
6. If Amendment, Date of Original (Month/Day/Year)
- -----------------------------------------------------------------------------
7. Individual or Joint/Group Filing (Check Applicable Line)
x Form filed by One Reporting Person
- ----
Form filed by More than One Reporting Person
- ----
<PAGE>
Table I -- Non-Derivative Securities Beneficially Owned
<TABLE>
1. Title of Security 2. Amount of Securities 3. Ownership 4. Nature of Indirect
(Instr. 4) Beneficially Owned Form: Direct Beneficial Ownership
(Instr. 4) (D) or Indirect (Instr. 5)
(I)(Instr. 5)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
* If the form is filed by more than one reporting person, see
Instruction 5(b)(v).
(Over)
SEC 1473 (7-96)
<PAGE>
FORM 3 (continued)
Table II -- Derivative Securities Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
<TABLE>
1. Title of Derivative 2. Date Exercisable 3. Title and Amount of 4. Conver- 5. Owner- 6. Nature
Security (Instr. 4) and Expiration Securities Underlying sion or ship of In-
Date (Month/Day/Year) Derivative Security Exercise Form of direct
------------------------- (Instr. 4) Price of Deriv- Bene-
Date Expira- ------------------------- Derivative ative ficial
Exer- tion Title Amount Security Security: Owner-
cisable Date or Direct ship
Number (D) or (Instr.
of Indirect 5)
Shares (I)
(Instr.
5)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Warrant 3/3/98 3/2/03 Common Stock 2,000,000(1) $5.00 I (see footnote 1)
Warrant 11/1/99 10/31/04 Common Stock 2,150,000(1) $0.10 I (see footnote 1)
</TABLE>
Explanation of Responses:
(1) Amount reported includes Warrants beneficially owned by AIF II, L.P. ("AIF")
that are exercisable for an aggregate of 2,324,000 common shares of Brooke Group
Ltd. (the "Issuer"). Lion Capital Management, Inc. ("Lion Management") is the
general partner of the Reporting Person. Apollo Advisors, L.P. ("Advisors") is
the general partner of AIF. Apollo Capital Management, Inc. ("Apollo
Management") is the general partner of Advisors. Leon D. Black and John J.
Hannan are the directors and principal executive officers of Lion Management and
Apollo Management. The Reporting Person, AIF, Advisors, Apollo Management, Lion
Management, Messrs. Black and Hannan and their respective affiliates disclaim
beneficial ownership of all shares of the Issuer in excess of their pecuniary
interests, if any, and this report shall not be deemed an admission that any
such person or entity is the beneficial owner of, or has any pecuniary interest
in, any such securities for purposes of Section16 of the Securities Exchange Act
of 1934, as amended, or for another purpose. The foregoing does not include any
adjustments for the declaration or payment by the Issuer of a 5% stock dividend
on September 30, 1999 to holders of record on September 24, 1999.
LION ADVISORS, L.P.
By: Lion Capital Management, Inc.,
its general partner
/s/ Michael D. Weiner September 30, 1999
- ------------------------------- ------------------------
**Signature of Reporting Person Date
**Intentional misstatements or omissions of facts constitute Federal Criminal
Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space is insufficient, See Instruction 6 for procedure.
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB Number.
Page 2
SEC 1473 (7-96)
