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.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
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.
