Alpha Nutraceuticals has paid off a bank note owed by Avidia worth $135,970 and assumed trade debts totaling $77,096.
Alpha also issued a total of 60,000 shares of its common stock to the principals of Avidia.
"We have acquired skilled employees, needed manufacturing equipment, an inventory of work in progress, over $40,000 in receivables, and a business which last year generated sales in excess of $400,000 and which should grow substantially this year," said Alpha Nutraceuticals president Louis Paulsen.
"Most importantly, we have enhanced our manufacturing capabilities to the point that we are ready for the expansion which our growth pattern mandates," he added.
Dr Kurt Donsbach, the formulator of Alpha Nutraceuticals' proprietary product line, said: "This should have a very positive impact on our net profits."
Alpha Nutraceuticals also announced that it had terminated negotiations to acquire Tempo Laboratories, another supplement manufacturer. "We found that we couldn't reach an agreement with Tempo that made sense. Avidia has proven to be a better acquisition in every respect," said Paulsen.
Alpha makes specialty dietary supplements.