e424b2
Filed Pursuant to Rule 424(b)(2)
Registration No. 333-140227
PROSPECTUS SUPPLEMENT
(To Prospectus dated February 8, 2007)
102,145 Shares of Common Stock
Pursuant to this prospectus supplement, we are offering 102,145 shares of our common stock
(the Shares) to Michael P. Burke, pursuant to the agreement as detailed below. The Company will
not receive any of the proceeds from sales of the shares of Common Stock by the security holders.
We expect to issue the Shares to the above-named person on or about June 1, 2007. Our Common
Stock is listed on the American Stock Exchange (AMEX) under the trading symbol KAD. The last
reported sale price of our Common Stock on May 30, 2007 was $1.50 per share.
Please read this prospectus supplement and the base prospectus carefully before you invest.
Both documents contain information you should carefully consider before making your investment
decision. Investing in Arcadia Resources, Inc. Common Stock involves risks. See Risk Factors
beginning on page S-3.
Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or determined if this prospectus supplement and the
base prospectus are truthful or complete. Any representation to the contrary is a criminal offense.
No dealer, salesperson or other person has been authorized to give any information or to make any
representations other than those contained in this prospectus supplement and the accompanying
prospectus, and if given or made, such information or representations must not be relied upon as
having been authorized by us, the selling security holders or any underwriter. You should rely only
on the information contained in this prospectus supplement and the accompanying prospectus. This
prospectus supplement does not constitute an offer to sell or the solicitation of an offer to buy
any security other than the Common Stock offered by this prospectus supplement, or an offer to sell
or a solicitation of an offer to buy any security by any person in any jurisdiction in which such
offer or solicitation would be unlawful. Neither the delivery of this prospectus supplement nor any
sale made hereunder shall, under any circumstances, imply that the information in this prospectus
supplement is correct as of any time subsequent to the date of this prospectus supplement.
The date of this prospectus supplement is May 31, 2007.
TABLE OF CONTENTS
Prospectus Supplement
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About This Prospectus Supplement |
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The Offering |
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4 |
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Risk Factors |
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4 |
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Use of Proceeds |
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Dilution |
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Where You Can Find More Information |
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Plan of Distribution |
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6 |
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ABOUT THIS PROSPECTUS SUPPLEMENT
This prospectus supplement is part of a registration statement that we have filed with the
Securities and Exchange Commission utilizing a shelf registration process. Under this shelf
process, we are offering to sell shares of our common stock using this prospectus supplement and
the accompanying prospectus. The prospectus supplement describes the specific terms of the common
stock offering. The accompanying base prospectus gives more general information, some of which may
not apply to this offering. You should read both this prospectus supplement and the accompanying
prospectus. If the description of the offering varies between the prospectus supplement and the
accompanying prospectus, you should rely on the information in this prospectus supplement.
You should rely only on the information contained or incorporated by reference in this
prospectus supplement and the accompanying prospectus. We have not authorized any other person to
provide you with different information. If anyone provides you with different or inconsistent
information, you should not rely on it. We are not making an offer to sell these securities in any
jurisdiction where the offer or sale is not permitted. You should assume that the information
appearing in this prospectus supplement, the accompanying prospectus and the documents incorporated
by reference is accurate only as of their respective dates. Our business, financial condition,
results of operations and prospects may have changed since those dates.
As used in this prospectus supplement, the terms Arcadia, we, our or us mean Arcadia
Resources, Inc., a Nevada corporation, and its predecessors and subsidiaries, unless the context
indicates otherwise.
THE OFFERING
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Common stock offered by Arcadia |
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Michael Burke
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102,145 shares
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Satisfaction of promissory note payment
obligation. |
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Total:
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102,145 shares |
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Common stock outstanding before the offering |
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109,966,032 shares, as of May 31, 2007 |
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Common stock outstanding after the offering
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110,068,177 shares |
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American Stock Exchange (AMEX) symbol
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KAD |
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RISK FACTORS
You should carefully consider the risks described below, in addition to the other information
in this prospectus supplement and the related prospectus, including the information incorporated by
reference herein, before making an investment decision. The risks and uncertainties described below
are all of the material risks facing our company.
If any of the following risks actually occur, our business, financial condition or results of
operations could be materially and adversely affected. In that case, the trading price of our
common stock could decline, and you may lose all or part of your investment in us.
Risks Related to this Offering
Due to our debt level, we may not be able to increase the amount we can draw on our revolving
credit facility with Comerica Bank, or to obtain credit from other sources, to fund our future
needs for working capital or acquisitions.
In addition to the debt described in the accompanying base prospectus dated February 8, 2007, the
Company has incurred additional debt financing as described below.
Our PrairieStone Pharmacy, LLC (PrairieStone) subsidiary is party to an Amended and Restated Line
of Credit with AmerisourceBergen Drug Corporation which, as of February 16, 2007, the date we
acquired PrairieStone, had an initial principal balance of $750,000 dollars and is secured by an
all assets security interest in the assets of PrairieStone and Company subsidiaries Wellscripts,
LLC and SSAC, LLC. The Amended and Restated Line of credit is guaranteed by the Company. Advances
under the Amended and Restated Line of Credit will be subject to, among other things, there being a
sufficient level of collateral and PrairieStone achieving certain levels of EBITDA.
USE OF PROCEEDS
The shares of common stock are being offered to settle certain liabilities as described more fully
below. We will not receive any cash proceeds from the sale of shares of our common stock by the
security holders. The security holders will pay any underwriting discounts and commissions and
expenses incurred by the
security holders for brokerage, accounting, tax or legal services or any other expenses incurred by
the security holders in connection with sales by them. We will bear all other costs, fees and
expenses incurred in effecting the registration of the shares covered by this prospectus
supplement, including, but not limited to, all registration and filing fees and fees and expenses
of our counsel and our accountants.
A total of 102,145 shares are to be issued to Michael P. Burke in order to settle two quarterly
payments, due January 27, 2007 and April 27, 2007, of $75,648 due on a note payable entered into on
January 27, 2006 in conjunction with the acquisition of Remedy Therapeutics, L.L.C. The quarterly
payments include interest at 8% per year.
DILUTION
The net tangible book value per share represents the amount of our total tangible assets, less
our total liabilities and the aggregate liquidation preference of our preferred stock outstanding,
divided by the total number of shares of our common stock outstanding. The number of shares of our
common stock outstanding may be increased by shares issued upon conversion of preferred stock,
payment of dividends and exercise of warrants or options, and, to the extent warrants and options
are exercised for cash, the net tangible book value of our common stock may increase. The Company
currently has no preferred stock outstanding. Because the shares of common stock being offered by
this prospectus supplement will be used to settle certain liabilities, it will decrease total
liabilities and, correspondingly, increase net tangible book value. There will be no dilution of
net tangible book value per share due to the issuance of these shares.
WHERE YOU CAN FIND MORE INFORMATION
Our SEC filings are available to the public over the SECs website at www.sec.gov. You may
also read and copy any document we file at the SECs public reference room at 100 F. Street, N.E.,
Washington, D.C. 20549. Please call the SEC at (800) SEC-0330 for further information on the
operating rules, copy charges and procedures for the public reference room.
We have filed with the SEC a registration statement on Form S-3 (the Registration Statement)
under the Securities Act of 1933, as amended (the Securities Act), with respect to the securities
offered hereby. This Prospectus Supplement and the accompanying Prospectus do not contain all of
the information contained in the Registration Statement. Copies of the Registration Statement and
the exhibits thereto are on file at the offices of the SEC and may be obtained upon payment of a
prescribed fee or may be examined without charge at the SECs public reference facility in
Washington D.C. or copied without charge from its website.
Our SEC filings are available to the public at no cost over the Internet at
www.ArcadiaResourcesInc.com, including our annual reports on Form 10-K, quarterly reports on Form
10-Q, and current reports on Form 8-K and any amendments to those reports. Information on our
website is not incorporated by reference in this prospectus. Access to those electronic filings is
available as soon as practical after filing with the SEC. You may also request a copy of those
filings, excluding exhibits, at no cost by writing or telephoning our principal executive office,
which is:
Arcadia Resources, Inc.
26777 Central Park Blvd., Suite 200
Southfield, Michigan 48076
Attention: Corporate Secretary (248) 352-7530
PLAN OF DISTRIBUTION
Please see the information set forth under the caption Plan of Distribution in the
accompanying prospectus. For more information, please see the section entitled Where You Can Find
More Information in this prospectus supplement.