Natural Health Trends Corp. Completes Sale of Vocational Schools for $1.8 Million and Raises an Additional $1.65 Million.POMPANO BEACH, Fla.--(BUSINESS WIRE)--Aug. 18, 1998-- Proceeds Will Be Used for General Working Capital To Redeem a Portion of the Outstanding Series A Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". and To Repay Debt Natural Health Trends Corp. (the "Company") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :NHTC NHTC National Heat Transfer Conference NHTC Nuclear Hazards Training Course ) announced today that it has further advanced the process of becoming a leading marketer of natural health products in national drug store chains and health food stores. The Company has completed the all-cash sale of its three Florida vocational schools which offer courses in massage therapy Massage Therapy Definition Massage therapy is the scientific manipulation of the soft tissues of the body for the purpose of normalizing those tissues and consists of manual techniques that include applying fixed or movable pressure, holding, and/or and skin care to Florida College of Natural Health, Inc. ("FCNH FCNH Florida College of Natural Health ") and received $1.8 million. FCNH has assumed all the liabilities of the Company in connection with the operation of the schools together with approximately $250,000 of additional liabilities. Neal R. Heller and Elizabeth S. Heller, his wife, each of whom had formerly been a director, officer and principal stockholder of the Company have resigned their positions with the Company, as has Arthur Keiser, a former director of the Company. Each of these individuals is a principal stockholder of FCNH. In addition, Mr. and Mrs. Heller have surrendered to the Company 79,175 of the 129,175 shares of the common stock of the Company which they own. In a separate transaction, the Company raised an additional $1.65 million through the issuance of additional convertible preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. . These transactions, together with the recent disposition of the Company's two natural health care centers, position the Company to focus its capital and human resources in developing and marketing its proprietary line of natural health products. The Company intends to utilize the proceeds from these transactions for general working capital, to redeem the outstanding Series A Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , to expand the marketing program for the Company's line of topically applied Natural Relief 1222(R) products and to repay debt. Natural Health Trends Corp. develops and markets a variety of all natural health products which are sold in such well known national, main stream drug store chains such as Wal-Mart, Rite Aid, Walgreens, Eckerd, Osco, Sav-on, Genovese, Arbor Drug and Long's, as well as in leading health food stores. All of the Company's products are proprietary and positioned as alternatives to traditional over-the-counter drugs. This press release contains statements of a forward-looking nature relating to future events. Shareholders are cautioned that such statements are predictions and that actual events or results may differ significantly. This release is available on the KCSA KCSA Krannert Center Student Association KCSA Kentucky Crushed Stone Association (Frankfort, KY) KCSA Kyiv City State Administration KCSA Kalamazoo Christian School Association KCSA Kentucky-Canadian Studies Association Worldwide Website at www.kcsa.com.
CONTACT: Natural Health Trends Corp.
Roger Guerin
207/772-7234
or
KCSA Worldwide
Robert Giordano
212/682-6300, ext. 289
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