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Stock Market & Financial Investment News

News Breaks
July 23, 2014
16:26 EDTADKAdCare announces strategic plan to transition to a facilities holding company
AdCare Health Systems announced that the board has approved, and management has begun to implement, a strategic plan to transition the company to a healthcare property holding and leasing company. Through a series of leasing transactions, the operations of the company's currently owned and operated healthcare facilities, which are principally skilled nursing facilities, will be transitioned to third parties, and the properties AdCare leases will be sub-leased. The board believes this new business model will help the company unlock shareholder value by reducing risk, enhancing cash flow and enabling the company to return cash to shareholders through a quarterly dividend. Under the strategic plan, the company expects through headcount reductions and other expense-reducing efforts, G&A will be significantly reduced, a significant improvement in earnings before taxes and existing net operating losses of approximately $25.8M will be available to offset future taxable income.
News For ADK From The Last 14 Days
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June 29, 2015
16:44 EDTADKAdCare files to sell 1.81M shares of common stock for holders
June 25, 2015
07:04 EDTADKAdCare receives HUD approval for five facilities
AdCare announced continued progress in its strategic transition to a property holding and leasing company. The company received approval from HUD with respect to four facilities in Ohio and one facility in Georgia and expects to complete the operations transfers of these facilities in the third quarter of 2015. The four Ohio facilities are subject to lease agreements previously executed with affiliates of Beacon Management and the Georgia facility is subject to a lease agreement previously executed with an affiliate of C-Ross Management. In the aggregate, the four Ohio facilities, plus an additional facility in Ohio which did not require HUD approval, and the Georgia facility, represent $4.1 million in initial year cash rent. As expected, the company completed the operations transfer of one skilled nursing facility in North Carolina, effective June 1, 2015, pursuant to a lease agreement previously signed with a wholly-owned subsidiary of Symmetry Healthcare Management, representing approximately $650,000 in initial year cash rent. Since the Board approved the strategic plan to transition the company's business from an owner and operator of healthcare facilities to a healthcare property holding and leasing company, the company has entered into agreements for 37 of its 40 healthcare facilities. The remaining two facilities in Georgia and one facility in Arkansas are pending final disposition.

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