Seniors Housing Weekly Update -- The AdCare Saga Goes On
May 21, 2013
The AdCare Saga Goes On
So what’s it going to be? Is Chris Brogdon going to take control of AdCare Health Systems for $8.00 per share? Is AdCare going to file its restated quarterly reports for 2012 any time soon? Are these two issues related? As you know, Mr. Brogdon has delayed his pending tender offer due to a need for closer scrutiny of Ohio takeover laws. It is a bit amateurish that this was not looked into before his grand announcement, and we have to wonder who he is getting advice from. But how can shareholders make a decision on what the company’s shares may be worth without the restated 2012 financial results, let alone anything from 2013, which has also been delayed. After peaking at $6.26 per share after the tender offer announcement, the shares have dropped by about 25% in value, and keep on dropping. No one knows how he derived the $8.00 value, and apparently fewer and fewer shareholders believe it will ever come to pass. Count us in on that opinion. But we would not be surprised to see a lower offer given all the uncertainty.