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
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
“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.