AdCare Health Systems, Inc., a leading skilled nursing and assisted living provider, received approximately $6.9 million in gross proceeds during the third quarter from the exercise of approximately 99% of warrants sold in its initial public offering in November 2006 and those sold in a private placement in December 2009. The company issued 2,897,149 shares of common stock upon such exercises. Each exercised warrant was exchanged for 1.05 shares of common stock at a price of $2.38 per share.

As previously announced, the company called the warrants for redemption on August 17, 2011. As a result of the warrant call, the company’s publically traded warrants, which traded under the trading symbol “ADK.WS” on the NYSE Amex stock exchange, ceased trading on September 26, 2011. As of September 29, 2011, 11,569,841 shares of common stock were outstanding.

“These funds fortified our balance sheet, as we continue our MA campaign and focus on improving the operations of our recently acquired facilities,” said Boyd Gentry, AdCare’s CEO.

Since the company began an aggressive MA program in the fall of 2009, it has purchased or leased 26 skilled nursing or assisted living facilities representing more than 2,700 beds. Combined with other transactions announced and in the process of closing, AdCare’s estimated annualized revenue run-rate is expected to exceed $285 million; this would represent an increase of more than 436% over the company’s revenues in 2010, and an increase of more than 969% over revenues in 2009.

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