CareCloud, Inc. (Nasdaq: MTBC) (Nasdaq: MTBCP), a leader in
healthcare technology solutions for medical practices and health
systems nationwide, today announced the successful closing of the
previously announced public offering of 1,000,000 shares of its
non-convertible 8.75% Series B Cumulative Redeemable Perpetual
Preferred Stock ("Series B Preferred Stock") at a public offering
price of $25 per share, for gross proceeds of $25 million. The
Company intends to use the net proceeds from the offering to begin
the redemption of a portion of its 11% Series A Cumulative
Redeemable Perpetual Preferred Stock, with up to $7.5 million of
net proceeds reserved for working capital, general corporate
purposes and growth initiatives, including potential future
acquisitions.
B. Riley Securities, Inc., Ladenburg Thalmann
& Co. Inc., and EF Hutton, division of Benchmark Investments,
LLC, acted as book-running managers for the offering. Aegis Capital
Corp., The Benchmark Company, LLC, Boenning & Scattergood,
Inc., Chapin Davis Investments, Colliers Securities LLC and Maxim
Group LLC acted as co-managers for the offering.
After deducting underwriting fees and other
offering expenses payable by CareCloud, the net proceeds to
CareCloud were approximately $23.1 million prior to the exercise of
the underwriters’ option to purchase additional shares.
Purchasers of shares of Series B Preferred Stock
are entitled to receive cumulative cash dividends at the rate of
8.75% per annum of the $25.00 per share liquidation preference
(equivalent to $2.1875 per annum per share). Dividends on the
Series B Preferred Stock are cumulative and payable monthly on the
15th day of each month; provided that if any dividend payment date
is not a business day, then the dividend may be paid on the next
succeeding business day. The first dividend will be paid on March
15, 2022, and will cover the period from the date of issuance
through, but not including, the first record date, February 28,
2022. Dividends are payable to holders of record on the applicable
record date, which shall be the last day of the calendar month,
whether or not a business day.
The shares of preferred stock were sold pursuant
to an effective shelf registration statement on Form S-3 previously
filed with the Securities and Exchange Commission (the “SEC”). The
public offering will be made only by means of a prospectus
supplement and the accompanying base prospectus. Copies of the
prospectus supplement and the accompanying base prospectus may be
obtained for free by visiting EDGAR on the SEC’s website at
www.sec.gov. Alternatively, copies of the prospectus may be
obtained from the offices of B. Riley Securities, at 1300 North
17th Street, Suite 1300, Arlington, VA 22209 or by calling (703)
312‐9580 or by emailing prospectuses@brileyfin.com.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy the securities being
offered, nor shall there be any sale of the securities being
offered in any state or other jurisdiction in which such offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or other
jurisdiction.
About CareCloud
CareCloud (Nasdaq: MTBC) (Nasdaq: MTBCP) brings
disciplined innovation to the business of healthcare. Our suite of
technology-enabled solutions helps clients increase financial and
operational performance, streamline clinical workflows and improve
the patient experience. More than 40,000 providers count on
CareCloud to help them improve patient care while reducing
administrative burdens and operating costs. Learn more about our
products and services including revenue cycle management (RCM),
practice management (PM), electronic health records (EHR), business
intelligence, telehealth and patient experience management (PXM) at
www.carecloud.com.
SOURCE CareCloud
Forward Looking Statements
This press release contains various
forward-looking statements within the meaning of the federal
securities laws. These statements relate to anticipated future
events, future results of operations or future financial
performance. Forward-looking statements in this press release
include, without limitation, statements relating to use of
proceeds, dividend payments and the underwriter option to purchase
additional shares. In some cases, you can identify forward-looking
statements by terminology such as “may,” “might,” “will,” “should,”
“intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,”
“believes,” “estimates,” “predicts,” “potential,” or “continue” or
the negative of these terms or other comparable terminology.
These forward-looking statements are neither
historical facts nor assurances of future performance. Instead,
they are only predictions, are uncertain and involve substantial
known and unknown risks, uncertainties and other factors which are
outside of our control and may cause our (or our industry’s) actual
results, levels of activity or performance to be materially
different from any future results, levels of activity or
performance expressed or implied by these forward-looking
statements. New risks and uncertainties emerge from time to time,
and it is not possible for us to predict all of the risks and
uncertainties that could have an impact on the forward-looking
statements, including without limitation, risks and uncertainties
relating to the Company’s ability to manage growth, migrate newly
acquired customers and retain new and existing customers, maintain
cost-effective global operations, increase operational efficiency
and reduce operating costs, predict and properly adjust to changes
in reimbursement and other industry regulations and trends, retain
the services of key personnel, develop new technologies, upgrade
and adapt legacy and acquired technologies to work with evolving
industry standards, compete with other companies’ products and
services competitive with ours, and other important risks and
uncertainties referenced and discussed under the heading titled
“Risk Factors” in the Company’s filings with the Securities and
Exchange Commission. In addition, there is uncertainty about the
spread of the Covid-19 virus and the impact it may have on the
Company’s operations, the demand for the Company’s services, and
economic activity in general.
The statements in this press release are made as
of the date of this press release, even if subsequently made
available by the Company on its website or otherwise. The Company
does not assume any obligations to update the forward-looking
statements provided to reflect events that occur or circumstances
that exist after the date on which they were made.
Company Contact:Bill KornChief Financial
OfficerCareCloudbkorn@carecloud.com
Investor Contact:Matt Kreps, Managing
DirectorDarrow Associates Investor
Relationsmkreps@darrowir.com(214) 597-8200
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