ATLANTA, July 19, 2016 /PRNewswire/ -- AdCare
Health Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA), a
self-managed healthcare real estate investment company that invests
primarily in real estate purposed for senior living and long-term
healthcare, today announced that the company has transferred the
operations of its Savannah Beach
facility located in Georgia from
New Beginnings Care, LLC to an affiliate of Peach Health Group
LLC.
"Our portfolio of properties is further enhanced with the
transfer of operations of one facility to Peach Health Group,"
commented Bill McBride, AdCare's
Chairman and Chief Executive Officer. "The ongoing process of
improving the financial, clinical and operational performance of
our portfolio continues as we strive to improve our returns on
investments and increase cash flow. We are pleased to have
partnered with Peach Health Group, a highly-regarded operator, to
increase the value of this property and elevate the standard of
care that is delivered. We are also working closely with Peach
Health on recertification plans for our Jeffersonville and Oceanside properties."
Proposed Sale of Nine Arkansas Properties
The company also announced that it amended its Purchase Agreement
with affiliates of Skyline Healthcare, LLC to extend the date by
which the sale of the company's nine Arkansas properties must close from
August 1, 2016 to August 31, 2016. In connection with the
extension: (i) the affiliates of Skyline Healthcare also
acknowledged their release or waiver of all conditions to the
completion of the sale; and (ii) the master lease under which the
company leases the nine Arkansas
properties to the affiliates of Skyline Healthcare was amended to
eliminate the company's indemnity obligations thereunder.
The master lease commenced on April 1,
2016. In connection with the master lease, Skyline
Healthcare entered into an option agreement to purchase the nine
properties at a purchase price of $55.0
million. On May 1, 2016, an
affiliate of Skyline Healthcare delivered notice of its intent to
exercise the option to purchase the properties, and a definitive
agreement for the purchase was subsequently executed. The
purchase price to be paid includes $52.0
million in cash at closing with the balance of the purchase
price to be evidenced by a promissory note. There is no
assurance that the sale of the nine Arkansas properties will be completed on the
terms described in this press release or at all.
About AdCare Health Systems
AdCare Health
Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA) is a self-managed
healthcare real estate investment company that invests primarily in
real estate purposed for senior living and long-term healthcare
through facility lease and sub-lease transactions. AdCare currently
owns, leases or manages for third parties 38 facilities. For more
information about AdCare, visit www.adcarehealth.com.
Important Cautions Regarding Forward-Looking
Statements
Statements contained in this press release that
are not historical facts may be forward-looking statements within
the meaning of federal law. Such statements can be identified by
the use of forward-looking terminology, such as "believes,"
"expects," "plans," "intends," "anticipates" and variations of such
words or similar expressions, but their absence does not mean that
the statement is not forward-looking. Statements in this press
release that are forward-looking include, among other things,
statements regarding the proposed sale of the nine Arkansas properties and the recertification
plans for the Jeffersonville and
Oceanside properties. Such forward-looking statements reflect
management's beliefs and assumptions and are based upon information
currently available to management and involve known and unknown
risks, results, performance or achievements of AdCare, which may
differ materially from those expressed or implied in such
statements. Such factors are identified in the public filings made
by AdCare with the Securities and Exchange Commission, including
AdCare's Annual Report on Form 10-K for the year ended December 31, 2015, and AdCare's subsequently
filed Quarterly Reports on Form 10-Q. There is no assurance that
such factors or other factors will not affect the accuracy of such
forward-looking statements. Except where required by law, AdCare
undertakes no obligation to revise or update any forward-looking
statements to reflect events or circumstances after the date of
this press release.
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visit:http://www.prnewswire.com/news-releases/adcare-transfers-operations-of-one-georgia-facility-to-peach-health-group-llc-extends-closing-date-for-sale-of-nine-arkansas-properties-to-august-31st-300300341.html
SOURCE AdCare Health Systems, Inc.