99% of Required Votes Obtained for CareCloud’s Series A Preferred Stock Proposal, Proxy Vote Solicitation Continues

Rhea-AI Summary

CareCloud, Inc. (Nasdaq: CCLD) announced that it has obtained approximately 99% of the minimum required 'FOR' votes by proxy for its Series A Preferred Stock Proposal. The company has received supportive proxy indications from over 2.97 million shares, nearing the required 3.02 million share threshold. If approved, the proposal would grant Series A Preferred Stock holders similar change of control protections as Series B Preferred Stock holders, align dividend structures, and allow the company to exchange Series A shares for common stock at $25/share plus accrued dividends.

The Special Meeting is scheduled for September 11, 2024, but may be adjourned if more time is needed for vote solicitation. Shareholders can still submit voting instructions through various methods. CareCloud emphasizes the importance of reviewing the full Definitive Proxy Statement and related SEC filings for complete information.

Positive

• Obtained 99% of required 'FOR' votes for Series A Preferred Stock Proposal
• Nearing the 3.02 million share threshold for approval
• Potential alignment of Series A and Series B Preferred Stock benefits if approved

Negative

• Special Meeting may be adjourned if more time is needed for vote solicitation
• Proposal not yet fully approved, outcome still uncertain

Insights

Financial Analyst

The 99% approval rate for CareCloud's Series A Preferred Stock proposal is a significant development. This high level of support indicates strong shareholder confidence in the company's strategic direction. The proposed changes, if approved, would align the Series A Preferred Stock with the Series B Preferred Stock, potentially simplifying the company's capital structure. The $25/share exchange option could provide flexibility in managing the company's equity. However, investors should note that this could lead to dilution of common stock if exercised. The change in dividend structure and control protections may impact the stock's attractiveness to certain investors. Overall, this move suggests CareCloud is positioning itself for potential future corporate actions, which could be positive for long-term growth prospects.

Legal Expert

The proxy vote solicitation process for CareCloud's Series A Preferred Stock proposal raises some interesting legal considerations. The company's approach of continuing solicitation despite nearing the required threshold demonstrates diligence in corporate governance. The provision for possible adjournment of the Special Meeting shows flexibility within legal frameworks. It's important to note the company's transparency in disclosing that previously submitted votes can be changed and non-votes count as "no" votes. This aligns with SEC regulations on fair disclosure. The proposed changes, if approved, would create parity between Series A and B Preferred Stocks in terms of change of control protections, which could have implications for future M&A activities. Shareholders should carefully review the full SEC filings to understand the complete legal ramifications of these changes.

SOMERSET, N.J., Sept. 10, 2024 (GLOBE NEWSWIRE) -- CareCloud, Inc. (the “Company”) (Nasdaq: CCLD, CCLDO, CCLDP), a leader in healthcare technology solutions for medical practices and health systems nationwide, today announced that while proxy vote solicitation continues, it has already obtained approximately 99% of the minimum required “FOR” votes by proxy in support of the amendment to the Company’s Certificate of Designations, Preferences and Rights of its Series A Preferred Stock (the “Preferred Stock Proposal”).

As of today, the Company has supportive proxy indications from more than 2.97 million shares and believes that it is quickly approaching the required 3.02 million share threshold. Additional investors who wish to submit their voting instructions can do so now by calling 844-874-6164, by visiting www.aalvote.com/ccld, or by mailing back their completed proxy card received from CareCloud. Anyone who would rather attend the Special Meeting in person can do so by following the instructions contained in the Definitive Proxy materials. While the Special Meeting is presently scheduled for September 11, 2024, the Company may adjourn the meeting if it needs additional time to continue vote solicitation activities.

If the Preferred Stock Proposal is ultimately approved, holders of Series A Preferred Stock would receive similar change of control protections to those afforded to holders of the Company’s Series B 8.75% Cumulative Redeemable Perpetual Preferred Stock (the “Series B Preferred Stock”). Also, the dividend of Series A Preferred Stock would mirror that of the Series B Preferred Stock, and the Company would, going forward, have the right to exchange the shares of Series A Preferred Stock for common stock at the liquidation preference value of $25/share, plus accrued and unpaid dividends.

The Company, while optimistic, cannot predict future proxy or voting results, which could be more or less favorable than the trends seen to date. Those who have already returned proxy vote indications have the ability to change their instructions. Any shares that are not voted will be deemed “no” votes for the Preferred Stock Proposal.

The information contained in this press release is a summary of certain relevant portions of the Definitive Proxy Statement and other materials filed with the SEC. It is important that Series A Preferred Shareholders review the entirety of the filings, which are available on the SEC’s website and on https://ir.carecloud.com/series-a-special-proxy.

About CareCloud

CareCloud 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, patient experience management (PXM) and digital health at www.carecloud.com.

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Important Additional Information and Where To Find It. CareCloud filed with the SEC a definitive proxy statement on Schedule 14A on July 8, 2024, with respect to its future solicitation of proxies for the Special Meeting of Series A Preferred Stock shareholders (including any and all adjournments, postponements, continuations, and reschedulings thereof, the "Special Meeting"). The information contained in this press release is merely a summary of certain relevant portions of the Proxy Statement and it is important that Series A Preferred Stock shareholders review the entirety of the filing. SERIES A PREFERRED STOCK SHAREHOLDERS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT AND ANY OTHER AMENDMENTS OR SUPPLEMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT CARECLOUD'S FILING. Investors and security holders may obtain copies of these documents and other documents filed with the SEC by CareCloud free of charge through the website maintained by the SEC at www.sec.gov. The Notice of the Special Meeting of Series A Preferred Stockholders and our Proxy Statement for the Special Meeting, the Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2024 and June 30, 2024 are available at www.sec.gov.

Forward-Looking Statements

This press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “shall,” “should,” “could”, “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “seeks,” “estimates,” “predicts,” “possible,” “potential,” “target,” or “continue” or the negative of these terms or other comparable terminology.

Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management's expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, the impact of pandemics on our financial performance and business activities, and the expected results from the integration of our acquisitions.

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 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. We do not have an ongoing obligation to update shareholders regarding future proxy or vote trends, even if they are materially different from those experienced to date. 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.

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.

SOURCE CareCloud

Company Contact:
Norman Roth
Interim Chief Financial Officer and Corporate Controller
CareCloud, Inc.
nroth@carecloud.com

Investor Contact:
Bill Korn
CareCloud, Inc.
ir@carecloud.com

FAQ

What is the current status of CareCloud's (CCLD) Series A Preferred Stock Proposal vote?

CareCloud has obtained approximately 99% of the minimum required 'FOR' votes by proxy for its Series A Preferred Stock Proposal, with supportive proxy indications from over 2.97 million shares out of the required 3.02 million share threshold.

When is the Special Meeting scheduled for CareCloud's (CCLD) Series A Preferred Stock Proposal?

The Special Meeting is currently scheduled for September 11, 2024, but may be adjourned if additional time is needed for vote solicitation.

What changes would occur if CareCloud's (CCLD) Series A Preferred Stock Proposal is approved?

If approved, Series A Preferred Stock holders would receive similar change of control protections as Series B Preferred Stock holders, dividend structures would align, and CareCloud could exchange Series A shares for common stock at $25/share plus accrued dividends.

How can CareCloud (CCLD) shareholders submit their voting instructions for the Series A Preferred Stock Proposal?

Shareholders can submit voting instructions by calling 844-874-6164, visiting www.aalvote.com/ccld, mailing back their completed proxy card, or attending the Special Meeting in person.