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Arcadia Resources Inc. (OTCBB: KADR.PK) reported it won’t be able to repay debt that came due April 1 and that it continues efforts to sell its homecare and healthcare staffing business lines, according to a filing with the U.S. Securities and Commission on Thursday. The company advised investors against trading in its stock.
The Indianapolis-based company said $30 million in debt came due April 1 under three promissory notes. However, Arcadia reported it would likely be unable to make payments on the notes even if its divisions are sold.
Arcadia also has a line of credit through Comerica bank, and it’s working with the bank to create a forbearance agreement, according to the SEC filing. The company owed Comerica $9.5 million as of Dec. 31.
A sale of the Arcardia’s homecare and healthcare staffing business lines would also leave the firm without other operating businesses. In light of this, “the company does not believe that its common shares outstanding have any value, and the company strongly discourages investors from trading in the company’s common stock,” according to the filing.
Arcadia also reported it sold five operating locations in North Carolina to Premier Home Health Services Inc. for $250,000 in cash and a note payable for $500,000. Arcadia will retain all accounts receivable prior to the effective date of the sale. The locations had revenue of $3.7 million in the nine-month period ended Dec. 31, 2011.