CareCloud Files Special Meeting Proxy to Accelerate Growth
CareCloud (Nasdaq: CCLD) has announced a proxy solicitation from common stock shareholders to approve an increase in authorized shares from 35 million to 85 million. The proposal aims to support growth initiatives and enable potential conversion of Series A Preferred Stock to Common Stock.
The company's board and executive team, owning over 38% of Common Stock, support this initiative. CareCloud has demonstrated strong performance with a 23% CAGR over the past decade, generated over $10 million in free cash flow, and achieved a 50% year-over-year increase in adjusted EBITDA during the first three quarters of 2024.
A Special Meeting of Common Stock Shareholders is scheduled for January 27, 2025, with a record date of December 3, 2024. Shareholders can vote through e-voting, mail, or by attending the meeting.
CareCloud (Nasdaq: CCLD) ha annunciato una sollecitazione di voto da parte degli azionisti di azioni ordinarie per approvare un aumento delle azioni autorizzate da 35 milioni a 85 milioni. La proposta mira a sostenere le iniziative di crescita e a consentire una possibile conversione delle Azioni Preferenziali di Serie A in Azioni Ordinarie.
Il consiglio di amministrazione e il team esecutivo dell'azienda, che detiene oltre il 38% delle Azioni Ordinarie, sostengono questa iniziativa. CareCloud ha dimostrato forti performance con un CAGR del 23% nell'ultimo decennio, ha generato oltre 10 milioni di dollari di flusso di cassa libero e ha registrato un incremento del 50% nell'EBITDA rettificato anno su anno durante i primi tre trimestri del 2024.
Una Riunione Speciale degli Azionisti di Azioni Ordinarie è programmata per il 27 gennaio 2025, con una data di registrazione del 3 dicembre 2024. Gli azionisti possono votare tramite votazione elettronica, posta o partecipando all'incontro.
CareCloud (Nasdaq: CCLD) ha anunciado una solicitud de poder de los accionistas de acciones comunes para aprobar un aumento en las acciones autorizadas de 35 millones a 85 millones. La propuesta tiene como objetivo apoyar iniciativas de crecimiento y permitir la conversión potencial de las Acciones Preferentes de Serie A en Acciones Comunes.
El consejo de administración y el equipo ejecutivo de la empresa, que poseen más del 38% de las Acciones Comunes, apoyan esta iniciativa. CareCloud ha demostrado un sólido desempeño con un CAGR del 23% en la última década, ha generado más de 10 millones de dólares en flujo de caja libre y ha logrado un aumento del 50% en el EBITDA ajustado año tras año durante los primeros tres trimestres de 2024.
Una Reunión Especial de los Accionistas de Acciones Comunes está programada para el 27 de enero de 2025, con una fecha de registro del 3 de diciembre de 2024. Los accionistas pueden votar a través de votación electrónica, correo o asistiendo a la reunión.
CareCloud (Nasdaq: CCLD)는 보통주 주주들로부터 3,500만 주에서 8,500만 주로 승인하기 위한 대리 요청를 발표했습니다. 이 제안은 성장 이니셔티브를 지원하고 A 시리즈 우선주를 보통주로 전환할 수 있도록 하려는 목적입니다.
회사의 이사회와 경영진은 보통주 지분의 38% 이상을 보유하고 있으며, 이 이니셔티브를 지지합니다. CareCloud는 지난 10년 동안 23%의 CAGR를 기록하는 등 강력한 실적을 보여주었으며, 1,000만 달러 이상의 자유 현금 흐름을 생성하고 2024년 첫 세 번째 분기 동안 조정 EBITDA가 전년 대비 50% 증가했습니다.
보통주 주주를 위한 특별 회의가 2025년 1월 27일로 예정되어 있으며, 기산일은 2024년 12월 3일입니다. 주주들은 전자 투표, 우편 또는 회의에 참석하여 투표할 수 있습니다.
CareCloud (Nasdaq: CCLD) a annoncé une sollicitation de procuration de la part des actionnaires d'actions ordinaires pour approuver une augmentation des actions autorisées de 35 millions à 85 millions. La proposition vise à soutenir les initiatives de croissance et à permettre une conversion potentielle des actions privilégiées de série A en actions ordinaires.
Le conseil d'administration de l'entreprise et l'équipe exécutive, détenant plus de 38 % des actions ordinaires, soutiennent cette initiative. CareCloud a démontré de solides performances avec un TCAC de 23 % au cours de la dernière décennie, généré plus de 10 millions de dollars de flux de trésorerie libre et réalisé une augmentation de 50 % de l'EBITDA ajusté d'une année sur l'autre au cours des trois premiers trimestres de 2024.
Une Assemblée Générale Spéciale des Actionnaires d'Actions Ordinaires est prévue pour le 27 janvier 2025, avec une date d'enregistrement fixée au 3 décembre 2024. Les actionnaires peuvent voter par vote électronique, par courrier ou en assistant à la réunion.
CareCloud (Nasdaq: CCLD) hat eine Stimmrechtsvertretung von Aktionären der Stammaktien angekündigt, um eine Erhöhung der autorisierten Aktien von 35 Millionen auf 85 Millionen zu genehmigen. Der Vorschlag soll Wachstumsinitiativen unterstützen und eine potenzielle Umwandlung von Vorzugsaktien der Serie A in Stammaktien ermöglichen.
Der Vorstand und das Führungsteam des Unternehmens, die insgesamt über 38% der Stammaktien besitzen, unterstützen diese Initiative. CareCloud hat in den letzten zehn Jahren eine starke Leistung mit einem CAGR von 23% gezeigt, über 10 Millionen Dollar an freiem Cashflow erzielt und im Vergleich zum Vorjahr einen Anstieg des bereinigten EBITDA um 50% während der ersten drei Quartale 2024 erreicht.
Eine außerordentliche Hauptversammlung der Stammaktionäre ist für den 27. Januar 2025 angesetzt, mit einem Stichtag am 3. Dezember 2024. Die Aktionäre können per E-Voting, Post oder durch Teilnahme an der Sitzung abstimmen.
- Generated over $10 million in free cash flow in first three quarters of 2024
- Achieved 50% year-over-year increase in adjusted EBITDA
- Maintained 23% compound annual growth rate over past decade
- Management owns 38% of Common Stock, indicating strong alignment with shareholders
- Potential dilution of existing shareholders through increased authorized shares
- Additional share authorization may signal future equity fundraising needs
Insights
The proposed increase in authorized shares from 35M to 85M shares represents a significant strategic move for CareCloud. With a solid track record of
The
However, investors should note that while this move creates growth opportunities, it also represents potential dilution risk. The proposed 50M share increase is substantial relative to the current market cap, though the strong insider ownership may help mitigate some concerns about excessive dilution.
CareCloud's strategic positioning in the healthcare IT and AI solutions market shows promise, particularly given the sector's growth trajectory. The company's focus on both acquisitive and organic growth strategies has proven successful, as evidenced by their consistent growth rate and recent financial performance improvements.
The timing of this share authorization request aligns with broader market trends showing increased M&A activity in the healthcare technology sector. The company's ability to generate positive free cash flow while maintaining growth demonstrates operational efficiency and suggests a disciplined approach to expansion.
The market opportunity in healthcare IT solutions remains robust and CareCloud's proactive approach to securing growth capital could position them to capitalize on emerging opportunities. Their dual focus on revenue growth and profitability indicates a balanced approach to market expansion.
SOMERSET, N.J., Dec. 09, 2024 (GLOBE NEWSWIRE) -- CareCloud, Inc. (the “Company” or “CareCloud”) (Nasdaq: CCLD CCLDO, CCLDP), a leader in healthcare information technology solutions for medical practices and health systems nationwide, today announced the solicitation of proxies from its common stock (the “Common Stock”) shareholders to approve an increase in its authorized shares. This increase is designed to support the Company’s growth initiatives and corporate objectives.
Focus on Growth
Mahmud Haq, Founder and Executive Chairman of CareCloud’s Board of Directors stated, “As CareCloud’s largest common stockholder, Founder and Executive Chairman, I enthusiastically support this proposal. Our board and executive team collectively own more than
CareCloud, a leading developer and provider of healthcare information technology and AI solutions, has achieved a
The Proposal
The board-supported proposal seeks to increase the Company’s authorized shares of Common Stock from 35 million to 85 million. This increase is intended to provide the flexibility needed for strategic growth initiatives, including future acquisitions, and to enable the potential conversion of the Company’s outstanding Series A Preferred Stock to Common Stock. Additionally, it supports investments in organic growth and other corporate priorities.
The Special Meeting of Common Stock Shareholders, which is scheduled for January 27, 2025, will enable holders of the Common Stock as of December 3, 2024 to vote on increasing the Company’s authorized shares of Common Stock. Additional information regarding the Proxy is available on the Company’s website and at www.sec.gov.
How to Vote
CareCloud encourages all shareholders to participate and ensure their voices are heard. Shareholders may vote through one of the following methods:
- E-Vote: Shareholders may visit the website of the Company’s transfer agent (https://www.vstocktransfer.com/proxy) and use the identified control number to vote on or before 11:59 pm Eastern Time on January 23, 2025. Alternatively, they may vote online through their investment broker by following their voting instructions.
- Mail: Shareholders may mark, sign and date their proxy card, then detach it, and return it in the enclosed postage paid envelope. Proxies must be received by January 23, 2025, to be counted.
- Attend the Special Meeting: Shareholders may attend and vote their shares at the Special Meeting on January 27, 2025.
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, Twitter 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 "Special Meeting"). 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
President
CareCloud, Inc.
ir@carecloud.com
FAQ
What is the proposed increase in authorized shares for CareCloud (CCLD)?
When is CareCloud's (CCLD) Special Meeting of Shareholders scheduled?
What was CareCloud's (CCLD) free cash flow in the first three quarters of 2024?
What is the record date for CareCloud's (CCLD) Special Meeting?
