CareCloud Announces 94% Shareholder Support for Proposal to Increase Authorized Shares

Rhea-AI Summary

CareCloud announced that approximately 94% of the shares represented by proxies submitted to-date for the common stock special meeting scheduled for January 27, 2025 have voted FOR the Board-supported proposal to increase the number of authorized shares. This Proposal aims to provide the Company with greater strategic flexibility. The additional shares will enable CareCloud to pursue future acquisitions, support organic expansion, and facilitate the potential conversion of the Company’s outstanding Series A Preferred Stock into common stock. The increase also supports other corporate objectives to position the Company for long-term growth.

Stephen Snyder, Co-CEO of CareCloud, expressed enthusiasm for the overwhelming shareholder support, highlighting the company's standout performance in 2024 with an in-year appreciation of over 140%. Approval of the Proposal is seen as vital to enhancing shareholder value, providing tools to drive sustained revenue and profitability growth in the coming years. Shareholders are encouraged to submit their proxies before the January 23, 2025, deadline.

This press release summarizes information from the Definitive Proxy Statement and related filings with the U.S. Securities and Exchange Commission (SEC). Shareholders are encouraged to review these documents in their entirety, available on the SEC’s website and at CareCloud’s investor relations page.

Positive

• 94% shareholder support for the proposal.
• The proposal aims to increase authorized shares for strategic flexibility.
• Potential for future acquisitions and organic expansion.
• Facilitation of conversion of Series A Preferred Stock into common stock.
• Standout performance in 2024 with over 140% in-year appreciation.

Negative

• Potential dilution of existing shares with the increase in authorized shares.

Insights

Financial Analyst

The <percent>94%</percent> shareholder approval for increasing authorized shares is a strategic milestone for CareCloud. The company's remarkable <percent>140%</percent> stock appreciation in 2024 demonstrates strong market confidence. The proposed share increase serves multiple critical purposes: <ul><li>Enables strategic M&A opportunities for inorganic growth</li><li>Supports organic expansion initiatives</li><li>Facilitates conversion of Series A Preferred Stock, potentially simplifying the capital structure</li></ul> This capital structure optimization could enhance financial flexibility and improve trading liquidity. The ability to convert preferred stock to common shares could reduce dividend obligations and create a more streamlined equity structure. For a company with a relatively small market cap of <money>$62 million</money>, this flexibility is important for executing growth strategies and maintaining competitive positioning in the healthcare technology sector.

Corporate Strategy Expert

This share authorization represents a pivotal strategic move in CareCloud's growth trajectory. The overwhelming shareholder support indicates strong alignment between management's vision and investor expectations. The timing is particularly strategic following the company's stellar market performance. The additional share capacity creates a robust foundation for executing both defensive and offensive strategies: <ul><li>Enhanced ability to respond quickly to market opportunities without calling special meetings</li><li>Improved negotiating position for potential M&A deals</li><li>Greater flexibility in employee compensation and retention programs</li></ul> The potential preferred stock conversion could significantly improve the company's cost of capital structure. This comprehensive approach to capital management positions CareCloud to capitalize on the expanding healthcare technology market while maintaining strategic agility.

SOMERSET, N.J., Jan. 06, 2025 (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 approximately 94% of the shares represented by proxies submitted to-date for the common stock special meeting scheduled for January 27, 2025 (the “Special Meeting”) have voted “FOR” the Board-supported proposal to increase the number of authorized shares (the “Proposal”).

The Proposal seeks to increase the Company’s authorized common stock to provide greater strategic flexibility. The additional shares will enable CareCloud to pursue future acquisitions, support organic expansion, and facilitate the potential conversion of the Company’s outstanding Series A Preferred Stock into common stock. The increase also supports other corporate objectives to position the Company for long-term growth.

“We are thrilled with the overwhelming support from our shareholders for this important Proposal,” said Stephen Snyder, Co-CEO of CareCloud. “This momentum comes on the heels of a standout 2024, where CareCloud (Nasdaq: CCLD) emerged as one of the top-performing stocks with in-year appreciation of over 140%. Approval of the Proposal is vital to enhancing shareholder value and will provide us with the tools to drive sustained revenue and profitability growth in the years ahead.”

The Company strongly encourages shareholders who have not yet submitted their proxies to do so before the deadline of January 23, 2025.

The details of this press release summarize information from the Definitive Proxy Statement and related filings with the U.S. Securities and Exchange Commission (“SEC”). Shareholders are encouraged to review these documents in their entirety, which are available on the SEC’s website and at https://ir.carecloud.com/common-stock-special-proxy/. Proxy solicitation efforts are ongoing, and future results may differ from current trends.

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.

Follow CareCloud on LinkedIn, X and Facebook.

Important Additional Information and Where to Find It. CareCloud filed with the SEC a Definitive Proxy Statement on Schedule 14A on December 5, 2024, with respect to its future solicitation of proxies for the Special Meeting of Common Stock Shareholders (including any and all adjournments, postponements, continuations, and reschedulings thereof). The information contained in this press release is merely a summary of certain relevant portions of the Definitive Proxy Statement and it is important that shareholders review the entirety of the filing. 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 Common Stock Shareholders and our Definitive Proxy Statement for the Special Meeting, the Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and our Quarterly Report on Form 10-Q for the quarterly period ended September 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. 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: 
Stephen Snyder
Co-Chief Executive Officer
CareCloud, Inc.
ir@carecloud.com

FAQ

What does the CareCloud (CCLD) buyback mean for shareholders?

The buyback proposal aims to increase the number of authorized shares, providing strategic flexibility for future acquisitions, organic expansion, and conversion of Series A Preferred Stock into common stock.

How much shareholder support did CareCloud (CCLD) receive for the proposal?

Approximately 94% of the shares represented by proxies submitted to-date have voted in favor of the proposal.

When is the CareCloud (CCLD) special meeting scheduled?

The special meeting is scheduled for January 27, 2025.

What are the benefits of CareCloud (CCLD) increasing its authorized shares?

The increase in authorized shares will provide greater strategic flexibility, enabling future acquisitions, supporting organic expansion, and facilitating the conversion of Series A Preferred Stock into common stock.

What was CareCloud's (CCLD) stock performance in 2024?

CareCloud's stock saw an in-year appreciation of over 140% in 2024.

What is the deadline for CareCloud (CCLD) shareholders to submit proxies?

The deadline for submitting proxies is January 23, 2025.

Where can CareCloud (CCLD) shareholders find more information about the proposal?

Shareholders can review the Definitive Proxy Statement and related filings on the SEC’s website and CareCloud’s investor relations page.