JRjr33 Inc (JRJRQ)

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PART 3(short and sweet):The Mary Kay, CVSL, Richmont connection explained.

So we know that during the Months of April/May, Richmont had hired financial advisers and was "well along" toward assembling a bid for Avon. Roughly ninety days later, we have this:

"On August 24, 2012, we entered into an agreement (the “Share Exchange Agreement”) with Happenings Communications Group, Inc., a Texas corporation (the “HCG”), and Rochon Capital Partners, Ltd., a Texas limited partnership and the sole shareholder of HCG (“Rochon Capital”)"

Everyone should now know that the magazine publishing company(merger vehicle), is run by John Rochon's sister, and is part of Richmont Holdings. You should really start to study the timing of all these events. Let's exclude the new Board members for the time being and procede to the public relation statements via Richmont/Rochon/CVSL.

Refer here:

CVSL TO BE LED BY DIRECT SELLING VETERAN JOHN ROCHON;
STRATEGY IS OUTLINED FOR DIRECT SELLING ACQUISITIONS
For Immediate Release (Dallas, TX, September 25, 2012)
"Mr. Rochon announced that his plan is to make CVSL the platform for a broad strategy of acquiring multiple privately-held direct selling companies. “We believe there is an important opportunity to accomplish something significant and unique in the direct selling channel,” he said."
Mr. Rochon said that, given his knowledge of the industry, some of the companies may require turnaround assistance, while others will be profitable at the point of acquisition and can focus on achieving a new level of growth. He said that CVSL initially will focus on direct sellers that offer products for health, the home and beauty
http://cvsl.us.com/news_09_25_12.html

CVSL ANNOUNCES SIX NEW BOARD MEMBERS
For Immediate Release (Dallas, TX, November 15, 2012)
http://cvsl.us.com/news_11_15_12.html

This next one is where all those "bells and whistles" should be going off in your head"

Rochon Plans to Build Direct-Selling Brands on LVMH Model(Bloomberg)
By Lauren Coleman-Lochner - Nov 27, 2012 10:25 AM GMT-0500

John Rochon, the former head of Mary Kay Inc., says he’s working to acquire a collection of door-to- door selling businesses that will emulate LVMH Moet Hennessy Louis Vuitton SA (MC)’s model of giving the brands’ founders independence to run their businesses.
Rochon, who has invested in RealPage Inc. (RP) and Dirt Devil, in August agreed to take over Computer Vision Systems Laboratory Corp. (CVSL) to form a vehicle for buying direct-selling companies. CVSL has buyouts with $6 billion in total sales in the works, Rochon said, declining to name them. While some deals won’t be completed, several are close, he said.

Rochon, who also is founder and chairman of Dallas-based Richmont holdings, mounted takeover attempts for rival Avon Products Inc. (AVP) in the late 1980s and early 1990s and at one point was its largest shareholder with 22 percent of the stock. Richmont was working on a proposal to buy a new stake in Avon, a person familiar with the situation said in September. Rochon declined to comment.
http://www.bloomberg.com/news/2012-11-27/rochon-plans-to-but-direct-selling-brands-on-lvmh-model.html

"a person familiar with the situation said in September"

This should start to becoming a bit more clear. If a company has $6 billion in total sales in buyouts on the table, it's not going to be going after 100 companies with total sales in a given period of $600 million(whether in a given year or since inception). But it will stage itself to get the to final objective. So in the three months after Rochon was confirmed in his ambition to take a stake in Avon(majority or minority), he set up CVSL. The company, as stated, " CVSL initially will focus on direct sellers that offer products for health, the home and beauty". Instead of buying parts and pieces of companies , as in the case of Richmont Direct, they are going after the whole in part. As it builds, I would expect Mary Kay to become more evident in the picture, and I would expect Avon to be a part of this as well. If he can pull it off that is.

The key point is that now he has a public entity to better raise capital. Think leverage, and with that, I will refer to this one more time(from part II):

"Richmont has spoken with several private-equity funds and sovereign wealth funds about collaborating on a bid for the world's largest direct seller of cosmetics, said the people. Richmont contacted Avon before Coty withdrew to say it would be interested in a bid if the company were running a sales process, said one of the people."

I wonder what they told him, more precisely, what was their advise? Just maybe it was this(CVSL), and maybe Mary Kay is playing as well.