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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
PERIODIC REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
June 20, 197
HEALTHRITE INC.
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(Exact name of small business issue in its charter)
Delaware 13-3714405
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(State of Incorporation) (I.R.S. Employer I.D. No.)
11445 Cronhill Drive, Owings Mills, MD 21117
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(Address of principal executive offices & zip code)
(410) 581-8042
Registrant's telephone number, include area code
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ITEM 2. ACQUISITION AND DISPOSITION OF ASSETS
On June 20, 1997 Healthrite, Inc. ("Registrant") sold its Vitamin Specialties
line of business and all tangible and intangible assets to IVC Industries, Inc.
(IVC), a public company, for approximately $2,696,000 in cash. Related thereto,
the assets included all inventory, furniture, fixtures and point of sales
systems in fifteen retail outlets operated by Vitamin Specialties in the
Philadelphia area, except the "store within a store" in the Wal-Mart Super
Center in Lewistown, P.A. Also included were the Vitamin Specialties inventories
held in the Owings Mills, Maryland and Arlee, Montana warehouses.
The assets sold include store cash on the day of closing, certain deposits on
lease property, lease rights in fifteen stores, goodwill, the name "Vitamin
Specialties", customer lists, mailing lists, permits and licenses necessary to
conduct business in connection with the Vitamin Specialties Operations. No
liabilities were assumed by IVC.
Proceeds from the sale totaling $1,380,000 were used in part to pay outstanding
debt including $1,275,000 to satisfy debt owed to Fleet Bank by the Registrant
and $105,000 to satisfy leases on computer hardware and software. The balance
of the initial proceeds of $1,139,000 proceeds were deposited to an operating
bank account used by the Company and will be used as working capital. Also,
there were certain contractual "holdbacks" of $177,000 to be paid by IVC over
the next six months.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Healthrite, Inc.
(Registrant)
Dated June 30, 1997 --------------------------------
Angelo J. Talluto
Chief Financial Officer
