SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT


     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934




Date of Report: (Date of earliest event reported)              November 26, 1996


                                Pure World, Inc.
             (Exact name of registrant as specified in its charter)



       Delaware                    0-10566                   95-3419191
   (State of other               (Commission               (I.R.S. Employer
    jurisdiction of               File Number)              Indentification No.)



           376 Main Street, P.O. Box 74, Bedminster, New Jersey 07921
              (Address of principal executive offices) (Zip Code)


       Registrant's telephone number, including area code: (908) 234-9220






Item 5. OTHER EVENTS
- --------------------

     On November 26, 1996, Pure World, Inc. ("Pure World") announced that it and
American  Industrial  Properties REIT, a Texas real estate investment trust (the
"Trust")  had  entered  into a  settlement  agreement  resolving  all  disputes,
including  litigation,  that had arisen between them as a result of Pure World's
efforts to influence the  management of the Trust.  The settlement is subject to
certain  conditions  including  court approval at a hearing set for December 19,
1996.

     The settlement agreement provides that the Trust pay $825,000 to Pure World
to  reimburse  it for costs  incurred in  connection  with the  disputes  and as
consideration  for releases and a standstill  agreement.  Subject to approval of
the  settlement,  Pure  World has also  agreed  to sell its  Trust  shares to an
affiliate of a Fortune 200 company at a price per share of $2.75 or an aggregate
of approximately  $2,494,250.  The payment in the settlement and the proceeds of
the  stock  sale  will  result  in a net  gain to Pure  World  of  approximately
$1,200,000 in the fourth  quarter ending  December 31, 1996. The Trust,  for its
part, has agreed to make numerous  changes to its Bylaws  designed to remedy the
corporate governance problems which Pure World pointed to in the disputes.

     The disputes  commenced  almost three years ago when Pure World opposed the
Trust's  attempt  to  reincorporate  in  Maryland,  an action  which  Pure World
contended would entrench management and give the Trust Managers a blank check to
recapitalize  the Trust.  After the Trust's move was  rejected by  shareholders,
Pure World twice sought to elect its nominees as Trust Managers and although its
nominees did not obtain the requisite 2/3 vote required to elect  non-incumbents
in either  election,  at the 1995 Annual  Meeting,  its  nominees  did receive a
plurality of the votes cast. After the 1995 election,  the Trust sued Pure World
and its Chairman in the United States District Court in Dallas asserting,  among
other  things,  that Pure  World  owned,  either  alone or as part of an alleged
group,  in excess of 9.8% of the Trust's  outstanding  shares in  violation of a
Trust Bylaw provision which purported to limit stock ownership to that level. In
September,  the Court granted Pure World's motion for partial summary  judgment,
holding  that the Trust's  Bylaw  limiting  share  ownership to 9.8% was invalid
under  Texas  law.  The Trust  Managers  then  adopted  another  Bylaw  limiting
ownership to 9.8%.  Upon  application  of Pure World,  the Court on November 12,
1996, entered a preliminary injunction enjoining the Trust from enforcing either
Bylaw  limiting  share  ownership and enjoining the Trust Managers from adopting
similar  provisions in the future.  As part of the settlement,  the parties have
requested  that the court lift the injunction and the Trust has agreed to submit
the issue of imposing limitations on share ownership to shareholders.



     Pure World stated that it has always  vigorously  denied the charges by the
Trust,  maintaining  that the  lawsuit  was  groundless  and only an  attempt to
silence a dissident  shareholder.  Pure World filed its own lawsuit  against the
Trust and its Trust Managers accusing them of illegally  entrenching  themselves
and wasting the Trust's assets.  Subsequently a second lawsuit was filed against
the Trust and its Trust Managers on similar  grounds by a shareholder  unrelated
to Pure World.  If the  settlement  is approved by the Court all the  litigation
will be dismissed.

     Pure World stated that although it was  confident  that it would prevail in
the  litigation,  it determined  that  continued  expenditure  of its assets was
unwarranted  since most of its objectives in the litigation  will be realized in
the  settlement.  The Trust  needs to  recapitalize,  Pure World  declared,  and
hopefully the Fortune 200 company will bring the leadership needed to facilitate
this  effort.  Paul  Koether,  chairman of Pure World,  said:  "Pure  World will
benefit not only from the financial terms of the settlement but also because the
settlement  finally  breaks any ties Pure  World has with its prior real  estate
business  and  enables  management  to devote all the  company's  resources  and
attention  to its  botanical  extract  business."  Pure  World owns 83% of Madis
Botanicals,  Inc., believed to be the largest  manufacturer in the United States
of botanical  extracts for the flavor,  cosmetic and  nutraceutical  industries.
Pure World has 7,644,378 shares outstanding.


    



                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

Dated:    December 2, 1996


                                                PURE WORLD, INC.




                                                    /s/ John W. Galuchie, Jr.
                                                    ----------------------------
                                                By: John W. Galuchie, Jr.
                                                    Executive Vice President