This Day On The Street
Continue to site
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

Stock Offerings: AdCare Health

NEW YORK ( TheStreet) -- AdCare Health Systems (ADK - Get Report) 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 - Get Report) 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 - Get Report) 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 - Get Report) 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
STEM $0.61 0.00%
ADK $3.90 0.00%
EGAS $10.17 0.00%
GHDX $27.11 0.00%
MHGC $6.81 0.00%


DOW 18,285.74 +0.34 0.00%
S&P 500 2,130.82 +4.97 0.23%
NASDAQ 5,090.7940 +19.0510 0.38%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs