AdCare Health Systems, Inc. (NYSE AMEX: ADK), an Ohio based long term care, home care and management company, recently reported that it completed a private placement of its securities that raised $2.5 million in cash to fund the Company’s growth initiatives, which include potential acquisitions of assisted living facilities and nursing homes as well as new management contracts.
"We are pleased that our shareholders voted to support the private placement and other issues at the special meeting of shareholders held a few days ago," said David A. Tenwick, Chairman of AdCare. "This is another important milestone in our strategy to continue and complement our organic growth with growth through acquisitions in a highly fragmented industry. AdCare has developed a strong reputation for operational efficiency and high quality living environments, and with the additional capital from the private placement, we plan to leverage these strengths to achieve our growth objectives."
The private placement was managed by Bathgate Capital Partners LLC, a full-service investment banking firm headquartered in the Denver suburb of Greenwood Village, Colorado. The placement consisted of Units priced at $2.00, with each unit consisting of one share of common stock and one five-year warrant to purchase an additional share of common stock at $2.50 per share. Bathgate Capital Partners placed a total of 1,400,000 Units, which raised $2.5 million in cash after commissions and expenses for the Company.
AdCare recently reported revenue of $19.9 million for the nine-month period ended September 30, 2009, up 9.4% from, revenue of $18.2 million in the same period a year ago. Net income increased to $443,000, a $1.2 million positive swing over the net loss of $745,000 in the year ago period. EPS was $0.12 versus a loss of $0.21 for the same period a year ago.