Item 1.01 Entry into a Material Definitive Agreement.
Healthier Choices Management Corp. (“HCMC”), through its wholly owned subsidiary, Healthy Choice Markets IV, LLC (the “Company”), entered into an Asset
Purchase Agreement (the “Purchase Agreement”), effective as of October 12, 2022, with Dean’s Natural Food Market of Shrewsbury, Inc., a New Jersey corporation, Green’s Natural Foods, Inc., a Delaware corporation, Dean’s Natural Food Market of
Chester, LLC, a New Jersey limited liability company, Dean’s Natural Food Market of Basking Ridge, LLC, a New Jersey limited liability company, and Dean’s Natural Food Market, Inc., a New Jersey corporation (collectively, the “Sellers”), and
shareholders of the Sellers. Pursuant to the Purchase Agreement, the Company acquired certain assets and assumed certain liabilities of an organic and natural health food and vitamin chain with eight store locations in New York and northern and
central New Jersey (the “Stores”). The cash purchase price under the Purchase Agreement is approximately $5,000,000, with an additional $1,779,802 paid for inventory at closing. In addition, the Company will assume all lease obligations for the
Stores.
The Purchase Agreement contains customary representations, warranties, and covenants of the Sellers and the Company. The Purchase Agreement also includes
restrictive covenants from the Sellers for the benefit of the Company. The transaction closed on October 14, 2022.
There is no material relationship between the Company, on the one hand, and Sellers, on the other hand, other than in respect of the Purchase Agreement.
A copy of the Purchase Agreement is filed as Exhibit 2.1 to this Current Report on Form 8-K and is incorporated herein by reference. The foregoing
description of the Purchase Agreement is qualified in its entirety by reference to the full text of such Purchase Agreement.