Voting on CareCloud’s Series A Proxy Reveals an Encouraging Trend
CareCloud (CCLD) reports encouraging trends in the voting on its Series A Preferred Stock proposal. 72% of Series A Preferred Shares that have returned proxies to date approve the Preferred Stock Proposal. The company needs an affirmative vote of at least two-thirds of all outstanding Series A Preferred Stock (about 3 million of 4.5 million shares) for the proposal to pass.
If approved, the proposal would grant Series A Preferred Stockholders similar change of control protections as Series B Preferred Stockholders, align the dividend with Series B Preferred Stock, and allow CareCloud to exchange Series A Preferred Stock for common stock at the $25/share liquidation preference value plus accrued dividends. The voting deadline is August 21, 2024.
CareCloud (CCLD) riporta tendenze incoraggianti nella votazione sulla sua proposta di azioni privilegiate di serie A. Il 72% delle azioni privilegiate di serie A che hanno restituito le deleghe fino ad oggi approvano la proposta sulle azioni privilegiate. L'azienda ha bisogno di un voto favorevole di almeno due terzi di tutte le azioni privilegiate di serie A in circolazione (circa 3 milioni su 4,5 milioni di azioni) affinché la proposta venga approvata.
Se approvata, la proposta concederebbe agli azionisti delle azioni privilegiate di serie A protezioni simili a quelle degli azionisti delle azioni privilegiate di serie B in caso di cambiamento di controllo, allineerebbe il dividendo con le azioni privilegiate di serie B e permetterebbe a CareCloud di scambiare le azioni privilegiate di serie A per azioni ordinarie al valore di liquidazione di $25 per azione più dividendi maturati. La scadenza per la votazione è il 21 agosto 2024.
CareCloud (CCLD) informa sobre tendencias alentadoras en la votación de su propuesta de acciones preferentes de la serie A. El 72% de las acciones preferentes de la serie A que han devuelto los poderes hasta la fecha aprueban la propuesta de acciones preferentes. La empresa necesita un voto afirmativo de al menos dos tercios de todas las acciones preferentes de la serie A en circulación (alrededor de 3 millones de 4,5 millones de acciones) para que la propuesta sea aprobada.
Si se aprueba, la propuesta otorgaría a los accionistas de acciones preferentes de la serie A protecciones similares a las de los accionistas de acciones preferentes de la serie B en caso de cambio de control, alinearía el dividendo con las acciones preferentes de la serie B y permitiría a CareCloud intercambiar acciones preferentes de la serie A por acciones ordinarias al valor preferencial de liquidación de $25 por acción más dividendos acumulados. La fecha límite para la votación es el 21 de agosto de 2024.
CareCloud (CCLD)는 시리즈 A 우선주 제안에 대한 투표에서 고무적인 경향을 보고합니다. 시리즈 A 우선주의 72%가 현재까지 위임장을 반환하여 우선주 제안에 동의했습니다. 회사는 제안이 통과되기 위해 발행된 모든 시리즈 A 우선주(약 450만 주 중 300만 주)의 3분의 2 이상의 긍정적인 투표가 필요합니다.
제안이 승인되면, 시리즈 A 우선주 주주에게는 시리즈 B 우선주 주주와 유사한 지배권 변경 보호가 제공되며, 배당금이 시리즈 B 우선주와 일치하게 되고, CareCloud는 시리즈 A 우선주를 주당 $25의 청산 우선권 가치와 누적 배당금으로 보통주로 교환할 수 있게 됩니다. 투표 마감일은 2024년 8월 21일입니다.
CareCloud (CCLD) signale des tendances encourageantes concernant le vote sur sa proposition d'actions privilégiées de série A. 72 % des actions privilégiées de série A ayant retourné des procurations jusqu'à présent approuvent la proposition d'actions privilégiées. L'entreprise a besoin d'un vote affirmatif d'au moins deux tiers de toutes les actions privilégiées de série A en circulation (environ 3 millions sur 4,5 millions d'actions) pour que la proposition soit adoptée.
Si elle est approuvée, la proposition accorderait aux actionnaires des actions privilégiées de série A des protections similaires à celles des actionnaires des actions privilégiées de série B en cas de changement de contrôle, alignerait le dividende avec les actions privilégiées de série B et permettrait à CareCloud d'échanger les actions privilégiées de série A contre des actions ordinaires à la valeur préférentielle de liquidation de 25 $/action plus les dividendes accumulés. La date limite de vote est le 21 août 2024.
CareCloud (CCLD) berichtet von ermutigenden Trends bei der Abstimmung über seinen Vorschlag zu Vorzugsaktien der Serie A. 72% der Vorzugsaktien der Serie A, die bisher Vollmachten zurückgegeben haben, stimmen dem Vorschlag für die Vorzugsaktien zu. Das Unternehmen benötigt eine Zustimmung von mindestens zwei Dritteln der insgesamt ausstehenden Vorzugsaktien der Serie A (etwa 3 Millionen von 4,5 Millionen Aktien), damit der Vorschlag angenommen wird.
Wird der Vorschlag genehmigt, würden den Inhabern von Vorzugsaktien der Serie A ähnliche Kontrolländerungsschutzrechte wie den Inhabern von Vorzugsaktien der Serie B gewährt, die Dividende würde an die Vorzugsaktien der Serie B angeglichen, und CareCloud hätte die Möglichkeit, die Vorzugsaktien der Serie A gegen Stammaktien zum Liquidationsvorzugspreis von 25 $/Aktie zuzüglich aufgelaufener Dividenden zu tauschen. Die Frist für die Abstimmung ist der 21. August 2024.
- 72% of returned proxies approve the Preferred Stock Proposal
- If approved, Series A Preferred Stockholders would receive enhanced change of control protections
- Proposal approval would allow CareCloud to exchange Series A Preferred Stock for common stock at $25/share plus dividends
- Only 11% of Series A Preferred Stock shares have provided voting instructions so far
- Proposal requires approval from two-thirds of all outstanding Series A Preferred Stock to pass
- Non-voted shares are counted as 'no' votes, making it harder to achieve the required two-thirds majority
This development regarding CareCloud's Series A Preferred Stock proposal carries significant implications for the company's financial structure and shareholder value. If approved, the proposal would align the terms of the Series A Preferred Stock with those of the Series B Preferred Stock, particularly in terms of dividend payouts and change of control protections. This alignment could simplify the company's capital structure and make it more attractive to investors by providing uniformity and predictability.
From a financial perspective, the approval would allow CareCloud to exchange Series A Preferred Stock for common stock at a liquidation preference value of $25 per share plus accrued dividends. This conversion could affect the stock's liquidity and pricing dynamics. For retail investors, understanding that the approval could lead to a potential dilution of common stock is crucial. However, it could also stabilize the company's financial standing by potentially reducing dividend liabilities over the long term.
Importantly, the 72% approval rate among those who have voted is a positive indicator, but the challenge remains to reach the two-thirds threshold, especially since non-voting shares will count as 'no' votes. This adds a layer of uncertainty to the outcome and investors should be cautious about the possible risks of the proposal not passing.
From a market dynamics standpoint, the ongoing proxy solicitation reflects underlying shareholder sentiment and the confidence in CareCloud's management strategy. Aligning the terms of Series A Preferred Stock with Series B might be seen as a move towards operational and financial consistency, which can enhance investor confidence and potentially lead to greater market stability for the stock.
This proposal could also signal to the market that CareCloud is positioning itself for a more streamlined and possibly more aggressive growth trajectory. By having the right to exchange preferred stock for common stock, CareCloud might be preparing for future capital raising activities or acquisitions that would benefit from a simplified equity structure.
Retail investors should note the reference to New Fortress Energy’s acquisition of Golar LNG Partners as an illustrative case. This comparison suggests potential restructuring scenarios that could play out similarly if the proposal passes, thereby offering a lens through which to assess the possible future state of CareCloud's securities post-approval.
From a legal perspective, the proposal to amend the Certificate of Designations, Preferences and Rights of CareCloud’s Series A Preferred Stock carries notable implications for shareholder protections and corporate governance. The proposed changes would provide Series A shareholders with change of control protections similar to those of Series B shareholders, which is a substantial enhancement of their rights.
This move could be interpreted as an effort by CareCloud to mitigate potential legal risks associated with future mergers or acquisitions. By ensuring that Series A shareholders have comparable protections, the company may be reducing the likelihood of contentious legal battles or resistance from this shareholder group in the event of a significant corporate transaction.
However, the legal requirement for a two-thirds affirmative vote highlights the challenge CareCloud faces. The company needs to ensure a high turnout among shareholders to avoid non-votes counting as 'no' votes. This situation underscores the importance of thorough communication and legal compliance in the proxy solicitation process to achieve the desired outcome.
SOMERSET, N.J., July 23, 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 it continues to solicit proxies from the holders (the “Series A Preferred Shareholders”) of its
“This is an important vote for Series A Preferred Shareholders,” said Stephen Snyder, President of CareCloud. “To become effective, the proposal needs the affirmative vote of at least two-thirds of the shares of all outstanding Series A Preferred Stock – or about 3 million of the outstanding 4.5 million shares. Series A Preferred Shareholders who would like to submit their voting instructions can do so now through August 21, 2024, by calling 844-874-6164, by visiting www.aalvote.com/ccld, or by mailing back the completed proxy card received from the Company. If you vote by phone or over the internet, you will need your control number from your proxy card. However, those who would instead prefer to attend the Special Meeting in person can do so by following the instructions contained in the Definitive Proxy materials filed with the SEC.”
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
If the Preferred Stock Proposal is not approved, the terms remain the same as when the Series A Preferred Stock was issued as previously disclosed in the prospectus. Accordingly, a potential acquirer of the Company could acquire the common stock of the Company, while leaving the Series A Preferred Stock outstanding as a security of a public reporting company. As an example of securities remaining outstanding after an acquisition, investors may find New Fortress Energy’s (Nasdaq: NFE) acquisition of Golar LNG Partners (Nasdaq: GMLP) to be a helpful, albeit somewhat different and distinguishable, reference point.
Proxy solicitation is ongoing and the Company cannot predict future proxy or voting results, which could be more or less favorable than the trends seen to date. Any shares that are not voted will be deemed “no” votes, making it more difficult for the Company to achieve the minimum two-thirds vote in favor of 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.
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 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 Report on Form 10-Q for the quarterly period ended March 31, 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
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