ATLANTA, April 18, 2017 /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
care, today announced that Allan J.
Rimland, currently AdCare's President and Chief Financial
Officer, has been named Chief Executive Officer effective
April 17, 2017. The Board of
Directors terminated Bill McBride's
employment for cause on such date, as disclosed in a Current Report
on Form 8-K filed on April 17,
2017.
"AdCare is moving forward with its growth strategy, and Allan is
the right person to lead this effort," commented Michael Fox, AdCare's Lead Independent Director.
"The Company continues its work to resolve legacy issues, and has
made considerable progress against each of the stated initiatives
the Board put in place to create sustainable shareholder value. The
Board is encouraged by the operating improvements seen thus far in
2017, and looking forward to continued progress."
"This transition is the culmination of an internal investigation
conducted by a special committee of the Board, which is also
discussed in the Current Report on Form 8-K," added David Tenwick, AdCare's founder and former
Chairman of the Board. "The Board is confident that Allan is the
ideal person to provide the leadership necessary to move AdCare
forward."
"We believe AdCare is well-positioned to continue to pursue
attractive acquisitions, streamline our balance sheet and reduce
operating costs," commented Mr. Rimland. "The steady improvements
in the operating performance of our property portfolio demonstrate
the progress we have made, and we expect additional improvements
going forward. I am excited to lead AdCare and believe continued
progress will lead to sustainable shareholder value."
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 29 facilities. For more information about AdCare, visit
www.adcarehealth.com.
Important Cautions Regarding Forward-Looking
Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Words such as "expects," "intends," "believes,"
"anticipates," "plans," "likely," "will," "seeks," "estimates" and
variations of such words and similar expressions are intended to
identify such forward-looking statements. Statements in this press
release regarding future events and developments and our future
performance, as well as management's expectations, beliefs, plans,
estimates or projections relating to the future, are
forward-looking statements.
Forward-looking statements, by their nature, involve estimates,
projections, goals, forecasts and assumptions and are subject to
risks and uncertainties that could cause actual results to differ
materially from those projected or contemplated by our
forward-looking statements due to various factors, including, among
others: our dependence on the operating success of our operators;
the significant amount of, and our ability to service, our
indebtedness; covenants in our debt agreements that may restrict
our ability to make investments, incur additional indebtedness and
refinance indebtedness on favorable terms; the availability and
cost of capital; our ability to raise capital through equity and
debt financings or through the sale of assets; the effect of
increasing healthcare regulation and enforcement on our operators
and the dependence of our operators on reimbursement from
governmental and other third-party payors; the relatively illiquid
nature of real estate investments; the impact of litigation and
rising insurance costs on the business of our operators; the impact
on us of litigation relating to our prior operation of our
healthcare properties; the effect of our operators declaring
bankruptcy, becoming insolvent or failing to pay rent as due; the
ability of any of our operators in bankruptcy to reject unexpired
lease obligations and to impede our ability to collect unpaid rent
or interest during the pendency of a bankruptcy proceeding and
retain security deposits for the debtor's obligations; our ability
to find replacement operators and the impact of unforeseen costs in
acquiring new properties; and other factors discussed from time to
time in our news releases, public statements and documents filed by
us with the Securities and Exchange Commission from time to time,
including our Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K. These forward-looking
statements and such risks, uncertainties and other factors speak
only as of the date of this press release, and we expressly
disclaim any obligation or undertaking to update or revise any
forward-looking statement contained herein, to reflect any change
in our expectations with regard thereto or any other change in
events, conditions or circumstances on which any such statement is
based, except to the extent otherwise required by applicable
law.
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SOURCE AdCare Health Systems, Inc.
