14.	Subsequent Events

On April 1, 2016, the Company completed the acquisition of Wetsman Forensic Medicine, L.L.C (d/b/a Townsend) and its affiliates (“Townsend”) for $13.5 million in cash and $8.5 million in restricted shares of AAC Holdings’ common stock. The cash portion of the transaction was funded from borrowings on the Deerfield Facility. Townsend is a substance abuse treatment provider in Louisiana that operates seven in-network outpatient centers that deliver intensive outpatient treatment as well as a 32-bed in-network facility located in Scott, Louisiana that has 20 beds licensed for detoxification and inpatient treatment. Townsend also operates an in-network lab that services these facilities. The Company anticipates utilizing the in-network lab to continue servicing Townsend’s current lab customers and to begin servicing AAC’s in-network residential and outpatient facilities in Florida, New Jersey, and Rhode Island.

On April 18, 2016, the Company acquired a 100-room hotel in Arlington, Texas for $5.35 million in cash and is currently in the process of converting it into sober living beds that will be used in support of the Greenhouse Outpatient Center. The acquisition was funded from borrowings pursuant to the Deerfield Facility.

On May 3, 2016, the Company completed the acquisition of Solutions Recovery, Inc., its affiliates and associated real estate assets (collectively “Solutions”) for an aggregate of $6.75 million in cash and $6.25 million of restricted shares of AAC Holdings’ common stock. The cash portion of the purchase price was funded from borrowings on the Deerfield Facility. Solutions Recovery provides detoxification, residential, and intensive outpatient treatment as well as sober living services in the greater Las Vegas area. The acquisition included the following:

124 Sober Living Beds

80 Licensed In-Network Detox, Residential and Halfway House Beds

Two Licensed, In-Network Outpatient Centers

In connection with acquisitions of Townsend, the hotel in Arlington, Texas and Solutions, the Company drew down an aggregate $25.0 million of unsecured subordinated debt under the Deerfield Facility. The unsecured subordinated debt bears interest at an annual rate of 12.0% and matures on October 2, 2020. The $25.0 million of unsecured debt can be repaid under certain conditions without penalty prior to October 2, 2017.