Advocat

(AVCA)

said the buyer for its last remaining assisted-living facility in North Carolina needs more time to conduct due diligence.

The facility is under contract to be sold for $4 million in a transaction that should close by the third quarter of 2006. Previously, Advocat had expected to close the deal in the second quarter.

"This sale is subject to customary contingencies, including the purchaser obtaining financing and completing due diligence," Advocat said. "This sale was initially expected to close in the second quarter, but the closing date has been extended to allow the purchaser more time to complete due diligence. The sale is now expected to close by the end of the third quarter of 2006, although no assurances can be given that the sale will be completed."

Advocat closed Wednesday at $16.25, more than triple its price at the end of 2005.