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

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.