SOURCE: AdCare Health Systems, Inc.

AdCare Health Systems, Inc.

October 04, 2011 08:31 ET

AdCare Health Systems Completes Exercise of Warrants for Gross Proceeds of $6.9 Million

SPRINGFIELD, OH--(Marketwire - Oct 4, 2011) - AdCare Health Systems, Inc. (NYSE Amex: ADK), a leading skilled nursing and assisted living provider, received approximately $6.9 million in gross proceeds during the third quarter from the exercise of approximately 99% of warrants sold in its initial public offering in November 2006 and those sold in a private placement in December 2009. The company issued 2,897,149 shares of common stock upon such exercises. Each exercised warrant was exchanged for 1.05 shares of common stock at a price of $2.38 per share.

As previously announced, the company called the warrants for redemption on August 17, 2011. As a result of the warrant call, the company's publically traded warrants, which traded under the trading symbol "ADK.WS" on the NYSE Amex stock exchange, ceased trading on September 26, 2011. As of September 29, 2011, 11,569,841 shares of common stock were outstanding.

"These funds fortified our balance sheet, as we continue our M&A campaign and focus on improving the operations of our recently acquired facilities," said Boyd Gentry, AdCare's CEO.

Since the company began an aggressive M&A program in the fall of 2009, it has purchased or leased 26 skilled nursing or assisted living facilities representing more than 2,700 beds. Combined with other transactions announced and in the process of closing, AdCare's estimated annualized revenue run-rate is expected to exceed $285 million; this would represent an increase of more than 436% over the company's revenues in 2010, and an increase of more than 969% over revenues in 2009.

This release is neither an offer to sell nor a solicitation of an offer to buy any securities of AdCare.

About AdCare Health Systems
AdCare Health Systems, Inc. (NYSE Amex: ADK) is a recognized innovator in senior living and health care facility management. AdCare develops, owns and manages assisted living facilities, nursing homes and retirement communities. Since its inception in 1988, AdCare's mission has been to provide the highest quality of healthcare services to the elderly. For more information about AdCare, visit www.adcarehealth.com.

Important Cautions Regarding Forward-Looking Statements
Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of federal law. Such statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "plans," "intends," "anticipates" and variations of such words or similar expressions, but their absence does not mean that the statement is not forward-looking. Statements in this announcement that are forward-looking include, but are not limited to, statements about the company's expected annualized revenue run-rate. Such forward-looking statements reflect management's beliefs and assumptions and are based on information currently available to management, and involve known and unknown risks, results, performance or achievements of AdCare which may differ materially from those expressed or implied in such statements. Such factors are identified in the public filings made by AdCare with the Securities and Exchange Commission and include, among others, AdCare's ability to secure lines of credit and/or an acquisition credit facility, find suitable acquisition properties at favorable terms, changes in the health care industry because of political and economic influences, changes in regulations governing the industry, changes in reimbursement levels including those under the Medicare and Medicaid programs and changes in the competitive marketplace. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements. Except where required by law, AdCare undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.

Contact Information

  • Company Contacts
    Boyd Gentry, CEO
    Chris Brogdon, Vice Chairman & CAO
    David A. Tenwick, Chairman of Board
    AdCare Health Systems, Inc.
    Tel (937) 964-8974
    Email Contact

    Investor Relations
    Ron Both or Geoffrey Plank
    Liolios Group, Inc.
    Tel (949) 574-3860
    Email Contact