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Arcadia adds Goldsmith to board, seeks $11M in offering

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Arcadia Resources Inc. has appointed former Indianapolis Mayor Steve Goldsmith to its board of directors, the locally based health care company announced Monday morning.

Goldsmith, who served as mayor from 1992 to 2000, is a professor in the American Government Program at Harvard University's Kennedy School of Government. He also is the chairman of the Corporation for National and Community Service, a major grant maker that supports national and community services programs.

Goldsmith will replace Tres Lund, a major Arcadia shareholder who resigned from the board after serving on it since 2007. 

In addition Monday morning, Arcadia said it plans to sell nearly 16 million shares of stock in a registered direct offering that will raise $11.1 million.

Arcadia, which operates health care staffing businesses and a pharmaceutical management service, has commitments to sell the shares to institutional investors, which it did not name in its announcement. The company needed more cash, as its reserves had dwindled to $517,000 at the end of the second quarter, down from $2.4 million a year earlier.

The investors will pay 70 cents for each unit, which consists of one share of common stock as well as a warrant to purchase 0.45 shares as early as six months from now. The warrants are exercisable at a price of 95 cents per share.

Arcadia’s stock price closed Friday at 75 cents per share. The value of the stock has tripled in the last year as Arcadia’s losses have narrowed. However, the company’s share price has fallen 35 percent from its high set in mid-September.

The new shares offered, which totaled 15,857,141, represent 9.8 percent of Arcadia’s total shares outstanding.

And the company could sell even more shares. According to a prospectus Arcadia filed Friday with the U.S. Securities & Exchange Commission, it may “from time to time” sell new shares up to a limit of 20 million.

 

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  1. How much you wanna bet, that 70% of the jobs created there (after construction) are minimum wage? And Harvey is correct, the vast majority of residents in this project will drive to their jobs, and to think otherwise, is like Harvey says, a pipe dream. Someone working at a restaurant or retail store will not be able to afford living there. What ever happened to people who wanted to build buildings, paying for it themselves? Not a fan of these tax deals.

  2. Uh, no GeorgeP. The project is supposed to bring on 1,000 jobs and those people along with the people that will be living in the new residential will be driving to their jobs. The walkable stuff is a pipe dream. Besides, walkable is defined as having all daily necessities within 1/2 mile. That's not the case here. Never will be.

  3. Brad is on to something there. The merger of the Formula E and IndyCar Series would give IndyCar access to International markets and Formula E access the Indianapolis 500, not to mention some other events in the USA. Maybe after 2016 but before the new Dallara is rolled out for 2018. This give IndyCar two more seasons to run the DW12 and Formula E to get charged up, pun intended. Then shock the racing world, pun intended, but making the 101st Indianapolis 500 a stellar, groundbreaking event: The first all-electric Indy 500, and use that platform to promote the future of the sport.

  4. No, HarveyF, the exact opposite. Greater density and closeness to retail and everyday necessities reduces traffic. When one has to drive miles for necessities, all those cars are on the roads for many miles. When reasonable density is built, low rise in this case, in the middle of a thriving retail area, one has to drive far less, actually reducing the number of cars on the road.

  5. The Indy Star announced today the appointment of a new Beverage Reporter! So instead of insightful reports on Indy pro sports and Indiana college teams, you now get to read stories about the 432nd new brewery open or some obscure Hoosier winery winning a county fair blue ribbon. Yep, that's the coverage we Star readers crave. Not.

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