This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stock Offerings: AdCare Health

NEW YORK (TheStreet) -- AdCare Health Systems (ADK) shares dropped after the company announced a secondary offering of common stock priced at a 6% discount to its last closing price.

AdCare Health Systems said it has priced an offering of approximately 1.71 million shares of common stock at $3.50 per share, below Tuesday's closing price of $3.72. Underwriters were granted a 30-day option to purchase up to an additional 257,143 shares to cover overallotments.

Net proceeds of approximately $5.5 million will be used for acquisition purposes, working capital and general corporate purposes, AdCare Health said.

Shares of AdCare Health were down 23 cents, or 6.2%, to $3.49, below the offering price. The stock is now down more than 11% in 2010, although it has gained more than 55% over the last 12 months.

Elsewhere, MELA Sciences (MELA) priced a public offering of 2.2 million shares of common stock at $7.50 per share. Underwriters have a 30-day option to acquire an additional 330,000 shares to cover overallotments, if any.

MELA Sciences said it expects net proceeds of approximately $17.5 million, assuming exercise of the overallotment option. TheStreet's Adam Feuerstein reports that MELA Sciences CEO Joseph Gulfo said during a Tuesday night conference call that the decision to sell stock now was made to "reduce headwinds and market uncertainty" surrounding the company's existing cash position.

Shares of MELA Sciences were sliding by 73 cents, or 8.8%, to $7.57.

StemCells (STEM) shares also traded lower after the company announced a $6 million equity financing deal. StemCells agreed to sell 7 million shares of its common stock to private-investment partnership Seaside 88 at a price of 86.5 cents per share, a 12.6% discount to Tuesday's closing price. StemCells expects to receive net proceeds from of approximately $5.7 million.

Seaside 88 has agreed to purchase an additional 5 million shares of common stock 12 weeks after the initial closing, although StemCells may elect not to sell the additional shares. Still, shares of the company were down 3.5% to 95.5 cents during Wednesday's trading session.

Energy, Inc. (EGAS) said late Tuesday it has filed for public offering of up to 2.5 millions shares of common stock. The company said it will sell up to 1.5 million shares of common stock selling shareholders may offer up to 1 million shares. Underwriters also have a 30-day option to purchase up to an additional 375,000 shares to cover overallotments, if any.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs