RealTime IT News

Drkoop Loses the Dot Com Name

Ten days after acquiring the assets of a home health care service provider, drkoop.com Inc. said it has received a $5 million cash infusion and changed its focus from an Internet pure play to a "a diversified health and wellness company."

The troubled company, named for the former Surgeon General of the U.S., had been delisted from Nasdaq and its stock was trading today at 11 cents a share. Last week the company said that it had consummated the acquisition of the operating assets of Detroit-based home care provider IVonyx Group Services Inc.

The Santa Monica, Calif.-based operation is changing its corporate name from drkoop.com to Dr. Koop LifeCare Corp. and said it has completed a private placement of its preferred stock generating about $5 million.

"The closure of the IVonyx acquisition, the pending distribution of Dr. Koop-branded supplements and the proposed corporate name change signify the completion of our evolution from a pure-play Internet consumer Web site to a well-diversified company with multiple revenue streams online and off-line," said Richard Rosenblatt, co-chairman and chief executive officer, in a statement.

"While the Internet will continue to be an important marketing and communication tool for Dr. Koop LifeCare, our focus will be on building new divisions and driving sales to existing and potential customers," he said.

The company, which paid $2 million in cash and 5 million shares its stock to acquire Ivonyx, has said it plans to launch Dr. Koop branded dietary supplements this fall.

Founded in 1997, drkoop.com has yet to have a profitable quarter and has suffered financially as Internet advertising revenues receded, undergoing various consolidations and employee layoffs. For the three months ended March 31, revenues fell 82 percent to $870,000. Net loss was $7.3 million. Results for the second quarter showed revenues at about $800,000; with a loss of about $3 million.