CareCloud launches $25 million series B perpetual preferreds offering

By Marisa Wong

Los Angeles, Jan. 27 – CareCloud, Inc. has begun a $25 million underwritten public offering of non-convertible series B cumulative redeemable perpetual preferred stock with a liquidation preference of $25.00 per share, according to a press release and 424B5 filing with the Securities and Exchange Commission.

The company expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the series B preferreds offered.

B. Riley Securities, Inc., Ladenburg Thalmann & Co. Inc. and EF Hutton, a division of Benchmark Investments, LLC, are acting as bookrunners for the offering.

Aegis Capital Corp., Benchmark Co., LLC, Boenning & Scattergood, Inc., Chapin Davis Investments, Colliers Securities LLC and Maxim Group LLC will be acting as co-managers.

The preferreds will be callable beginning on Feb. 15, 2024 at $25.75 per share, with the redemption price stepping down to $25.50 per share on Feb. 15, 2025, to $25.25 per share on Feb. 15, 2026 and to par on Feb. 15, 2027.

CareCloud intends to use proceeds from the offering to redeem 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.

The company has filed an application to list the series B preferreds on the Nasdaq Global Market under the symbol “MTBCO.”

The healthcare technology company is based in Somerset, N.J.

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