SPRINGFIELD, Ohio — Publicly traded Adcare Health Systems Inc., which owns and operates nursing homes and assisted-living facilities, has raised $2.5 million to fund future acquisitions.
Adcare, which employs 900 people and is traded on the American Stock Exchange, raised the money via a private placement of 1.4 million shares and warrants, according to a statement from the Springfield-based firm.
“This is another important milestone in our strategy to continue and complement our organic growth with growth through acquisitions in a highly fragmented industry,” said Chairman David Tenwick.
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Adcare provides management services to 20 long-term care facilities and has an ownership stake in eight of those. Founded in 1986, the company went public three years ago.
After posting net losses in each of the three years since it’s been public, Adcare may be on track to profitability this year. In the nine months ended Sept. 30, the company posted earnings of $443,000 on revenue of $19.9 million. Last year, the company lost $1.1 million on revenue of $24.8 million.
