SPRINGFIELD, Ohio, Dec. 22 /PRNewswire-FirstCall/ -- AdCare Health Systems, Inc. (NYSE Amex: ADK), an Ohio based long term care, home care and management company today reported that the warrants issued in connection with AdCare's initial public offering were amended to conform to the terms of the new warrants that were included in the Company's recent private placement that raised $2.5 million in cash to fund its current growth initiatives.
On December 21, 2009, the warrant holders voted to reduce the exercise price of their warrants from $5.40 per share to $2.50 per share, extend the expiration date until December 7, 2014 and provide the Company with a callable option which permits AdCare to call the warrants for $0.10 per warrant if the common stock trades above $6.00 per share for 10 consecutive trading days during which the average daily volume for the 10 day period is at least 40,000 shares. The warrant holder has 30 days to exercise the warrant after receiving the call notice from the Company.
David A. Tenwick, Chairman of AdCare, stated that, "With the public warrant holders voting their warrants to conform with the terms of the new private placement warrants and the lower exercise price, there is a greater incentive for the warrants to be exercised which could potentially bring in up to an additional $7 million in capital. Of course, we are excited about this prospect as we look for acquisitions of assisted living facilities and nursing homes as well as new management contracts. AdCare has enjoyed its best year ever in terms of financial performance, and is looking forward to 2010 with great anticipation."
About AdCare Health Systems, Inc.AdCare Health Systems, Inc. (NYSE Amex: ADK) develops, owns and manages assisted living facilities, nursing homes and retirement communities and provides home health care services. Prior to becoming a publicly traded company in November of 2006, AdCare operated as a private company for 18 years. AdCare's 900 employees provide management, development and accounting/financial services to 20 long term care facilities, nine of which are assisted living facilities, ten skilled nursing centers and one independent senior living community. The Company has ownership interests in eight of those facilities. In the ever expanding marketplace of long term care, AdCare's mission is to provide quality healthcare services to the elderly.