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) July 1, 2001

                                ITEX CORPORATION
             (Exact name of registrant as specified in its charter)


             Nevada                       0-18275               93-0922994
-------------------------------    ---------------------   --------------------
(State or other jurisdiction of    (Commission File No.)   (I.R.S. Employer
 incorporation or organization)                             Identification No.)


                                3400 Cottage Way
                          Sacramento, California 95825
                                 (916) 679-1111
          (Address and telephone number of principal executive offices)


ITEM 5.  OTHER EVENTS AND REGULATION FD DISCLOSURE

License of Franchise

On July 1,  2001,  ITEX  Corporation  (the  "Company"),  pursuant  to a Fee Paid
Independent Retail Brokerage Agreement (the "Agreement") granted, for a $400,000
fee ($160,000 paid, and monthly  payments  thereafter),  a license in Vancouver,
British  Columbia.  This is the  first  time that  ITEX  Corporation  has sold a
license  to an  independent  operator  to operate  as part of the  American  and
Canadian  ITEX  Retail  Trade  Exchange.  Normally,  ITEX  licenses  a broker to
establish  a new office and to attract new members  into the  exchange,  without
charge,  but in this  instance  transferred  certain  members  from its recently
acquired Ubarter acquisition pursuant to the license for a non-refundable fee.

The large number of former Ubarter.com members doing business in Vancouver,  who
are now part of ITEX, required a well organized and staffed broker and office to
facilitate their trades.  Although the Company previously announced an intention
to open a  corporate  office  in  Vancouver,  the  grant of the  license  to the
independent  operator  for a portion of those  members was more  economical  and
insured full  operational  support for the  Company's  exchange  members in that
region, while providing additional working capital for the Company.

Under the terms of the  Agreement,  the Company will assign 1,000 of its clients
doing  business in  Vancouver  to the  licensed  independent  operator.  Members
assigned to the  independent  regional  licensee will continue  trading  between
themselves  and the  approximately  30,000  members  of the  ITEX  Retail  Trade
Exchange operating in more than 70 corporate and independently  licensed offices
in the United States and Canada.


<PAGE> 2

The foregoing summary is intended to highlight certain essential elements of the
transaction and is not intended to be a complete description of all of the terms
of the  acquisition.  The Asset Purchase  Agreement is attached as an exhibit to
this Current  Report and the  foregoing is qualified in its entirety by the more
detailed provisions and disclosure contained in the actual agreement.

Forward Looking Statements

This Current Report on Form 8-K contains  forward-looking  statements  which are
made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform  Act  of  1995.  These  statements   involve  known  and  unknown  risks,
uncertainties  and  other  factors  that may  cause the  actual  results  of the
operations of ITEX to be materially different from those expressed or implied in
such statements.  These factors  include,  but are not limited to the continuing
development of successful marketing  strategies for the company's concepts;  the
effect of international, national, and regional economic conditions; the ability
of the company to satisfy its debt  obligations;  the  availability  of adequate
working  capital;  competitive  barter  exchanges and;  changes in  legislation;
demographic  changes,  the  ability to attract and retain  qualified  personnel;
changes in business strategy or development plans; business disruptions; changes
in the demand for goods and services  offered by members of its trade  exchange.
These risk factors and others are discussed in the periodic  reports and filings
of ITEX Corporation with the Securities and Exchange  Commission,  including but
not  limited  to its Form  10-K's  and Form  10-Qs.  All  statements  other than
statements of historical fact included in this Current Report, including without
limitations,   company's   business   strategy,   plans  and   objectives,   are
forward-looking statements

ITEM 7.  FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS

     (a) Financial Statements of Business Acquired

          None.

     (b) Pro Forma Financial Information

          None.

     (c) Exhibits

          Exhibit No.         Exhibit Description
          -----------         -------------------
             10.1             Fee Paid Independent Brokerage Agreement




<PAGE> 3


                                    SIGNATURE

     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: July 19, 2001                       ITEX CORPORATION
                                           a Nevada Corporation


                                           /S/ COLLINS M. CHRISTENSEN
                                           ------------------------------------
                                           Collins M. Christensen
                                           President and Chief Executive Officer
                                           (Principal Executive Officer)
[{"type": "8-K", "sequence": "1", "filename": "form8k070101.txt", "description": "FORM 8-K 7/1/01", "secsgml_size_bytes": 5862}]
{"company-data": {"conformed-name": "ITEX CORPORATION", "cik": "0000860518", "assigned-sic": "7389", "irs-number": "930922994", "state-of-incorporation": "NV", "fiscal-year-end": "0731"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-18275", "film-number": "1685730"}, "business-address": {"street1": "3400 COTTAGE WAY", "city": "SACRAMENTO", "state": "CA", "zip": "95825", "phone": "5032444673"}, "mail-address": {"street1": "10300 S W GREENBURG ROAD", "street2": "SUITE 370", "city": "PORTLAND", "state": "OR", "zip": "97223"}, "former-company": {"former-conformed-name": "ITEX BARTER SYSTEMS INC", "date-changed": "19600201"}}
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) July 1, 2001

                                ITEX CORPORATION
             (Exact name of registrant as specified in its charter)

             Nevada                       0-18275               93-0922994
-------------------------------    ---------------------   --------------------
(State or other jurisdiction of    (Commission File No.)   (I.R.S. Employer
 incorporation or organization)                             Identification No.)

                                3400 Cottage Way
                          Sacramento, California 95825
                                 (916) 679-1111
          (Address and telephone number of principal executive offices)

ITEM 5.  OTHER EVENTS AND REGULATION FD DISCLOSURE

License of Franchise

On July 1,  2001,  ITEX  Corporation  (the  "Company"),  pursuant  to a Fee Paid
Independent Retail Brokerage Agreement (the "Agreement") granted, for a $400,000
fee ($160,000 paid, and monthly  payments  thereafter),  a license in Vancouver,
British  Columbia.  This is the  first  time that  ITEX  Corporation  has sold a
license  to an  independent  operator  to operate  as part of the  American  and
Canadian  ITEX  Retail  Trade  Exchange.  Normally,  ITEX  licenses  a broker to
establish  a new office and to attract new members  into the  exchange,  without
charge,  but in this  instance  transferred  certain  members  from its recently
acquired Ubarter acquisition pursuant to the license for a non-refundable fee.

The large number of former Ubarter.com members doing business in Vancouver,  who
are now part of ITEX, required a well organized and staffed broker and office to
facilitate their trades.  Although the Company previously announced an intention
to open a  corporate  office  in  Vancouver,  the  grant of the  license  to the
independent  operator  for a portion of those  members was more  economical  and
insured full  operational  support for the  Company's  exchange  members in that
region, while providing additional working capital for the Company.

Under the terms of the  Agreement,  the Company will assign 1,000 of its clients
doing  business in  Vancouver  to the  licensed  independent  operator.  Members
assigned to the  independent  regional  licensee will continue  trading  between
themselves  and the  approximately  30,000  members  of the  ITEX  Retail  Trade
Exchange operating in more than 70 corporate and independently  licensed offices
in the United States and Canada.
2

The foregoing summary is intended to highlight certain essential elements of the
transaction and is not intended to be a complete description of all of the terms
of the  acquisition.  The Asset Purchase  Agreement is attached as an exhibit to
this Current  Report and the  foregoing is qualified in its entirety by the more
detailed provisions and disclosure contained in the actual agreement.

Forward Looking Statements

This Current Report on Form 8-K contains  forward-looking  statements  which are
made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform  Act  of  1995.  These  statements   involve  known  and  unknown  risks,
uncertainties  and  other  factors  that may  cause the  actual  results  of the
operations of ITEX to be materially different from those expressed or implied in
such statements.  These factors  include,  but are not limited to the continuing
development of successful marketing  strategies for the company's concepts;  the
effect of international, national, and regional economic conditions; the ability
of the company to satisfy its debt  obligations;  the  availability  of adequate
working  capital;  competitive  barter  exchanges and;  changes in  legislation;
demographic  changes,  the  ability to attract and retain  qualified  personnel;
changes in business strategy or development plans; business disruptions; changes
in the demand for goods and services  offered by members of its trade  exchange.
These risk factors and others are discussed in the periodic  reports and filings
of ITEX Corporation with the Securities and Exchange  Commission,  including but
not  limited  to its Form  10-K's  and Form  10-Qs.  All  statements  other than
statements of historical fact included in this Current Report, including without
limitations,   company's   business   strategy,   plans  and   objectives,   are
forward-looking statements

ITEM 7.  FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS

     (a) Financial Statements of Business Acquired

          None.

     (b) Pro Forma Financial Information

          None.

     (c) Exhibits

          Exhibit No.         Exhibit Description
          -----------         -------------------
             10.1             Fee Paid Independent Brokerage Agreement
3

                                    SIGNATURE

     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: July 19, 2001                       ITEX CORPORATION
                                           a Nevada Corporation

                                           /S/ COLLINS M. CHRISTENSEN
                                           ------------------------------------
                                           Collins M. Christensen
                                           President and Chief Executive Officer
                                           (Principal Executive Officer)