Arcadia sells stocks valued at $13 million
SOUTHFIELD, Mich. - A group of investors has agreed to buy about $13 million worth of Arcadia Resources common stock, the company announced May 25. Originally, the investors--primarily entities affiliated with Potomac Capital Management, an existing investor--had agreed to buy only $4 million worth of stock. Arcadia also issued the investors warrants to purchase additional shares. Arcadia will use the money "to repay existing borrowings and for general corporate purposes," the company stated in a release. In April, Arcadia sold a good chunk of its DME business for $16.5 million, a sign, industry watchers said, that the once rapidly growing company might be hurting for cash (See HME News, April 2007).