Nursing homes operation AdCare Health Systems Inc. (NYSE Amex: ADK) has closed a $6 million equity sale that it plans to use to fund acquisitions.
The long-term care provider sold 1.7 million shares at a price of $3.50 each to raise the sum, according to a statement from AdCare.
AdCare netted $5.4 million from the sale after underwriting discounts, commissions and legal fees are subtracted. The company plans to use the cash for acquisitions, working capital and general coporate purposes.
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Last year AdCare posted its first profitable year since it went public in 2006. The company reported net income of $440,000 on revenues of $27 million. The 900-employee company operates 19 facilities–11 nursing homes, seven assisted-living facilities and one “independent senior living community.”
In December, the company raised $2.5 million in a stock sale.
