CareCloud Announces Results from Annual Shareholder Meeting

Rhea-AI Summary

On June 1, 2022, CareCloud held its annual shareholders' meeting, where key decisions were made. Shareholders re-elected board members A. Hadi Chaudhry, John N. Daly, Mahmud Haq, and Cameron P. Munter for two more years. Additionally, shareholders voted to increase the company's authorized common stock from 29 million to 35 million shares and preferred stock from 7 million to 15 million shares. The Equity Plan was also amended to allow for more shares to be issued, enhancing management's flexibility in capitalizing the company.

Positive

• Re-election of experienced board members who have helped grow CareCloud's revenue to $140 million.
• Increase in authorized common and preferred shares allows for capital restructuring and potential financial benefits.

Negative

• None.

Shareholders Re-Elect Board Members and Vote to
Increase the Company’s Authorized Shares

SOMERSET, N.J., June 02, 2022 (GLOBE NEWSWIRE) -- CareCloud, Inc. (the “Company”) (Nasdaq: MTBC, MTBCO, MTBCP), a leader in healthcare technology solutions for medical practices and health systems nationwide, today announced that it held its 2022 annual shareholders’ meeting on June 1, 2022, during which shareholders re-elected A. Hadi Chaudhry, John N. Daly, Mahmud Haq, and Cameron P. Munter for another two-year term. Shareholders also voted to amend CareCloud’s certificate of incorporation to increase the Company's authorized shares of common and preferred stock, as well as to amend CareCloud’s Amended and Restated Equity Incentive Plan (the “Equity Plan”) to add additional common and Series B preferred shares issuable under the plan.

CareCloud’s shareholders approved the following five proposals:

1. Re-elect A. Hadi Chaudhry, John N. Daly, Mahmud Haq and Cameron P. Munter to the Board of Directors.
2. Amend the Company’s certificate of incorporation to increase the Company’s authorized shares of common stock from twenty-nine million shares to thirty-five million shares.
3. Amend the Company’s certificate of incorporation to increase the Company’s authorized shares of preferred stock from seven million shares to fifteen million shares.
4. Amend the Company’s Equity Plan to increase the number of shares of the Company’s common stock issuable under the Equity Plan from 4,851,000 shares to 5,851,000 shares.
5. Amend the Company’s Equity Plan to add 200,000 shares of the Company’s Series B Preferred Stock issuable under the Equity Plan.
   

“By authorizing these additional shares, shareholders are giving management the ability to recapitalize in the way that is most beneficial to shareholders,” said CareCloud CFO, Bill Korn. “We have the ability to reduce our dividend expense by issuing Series B Preferred Shares with a lower coupon and redeeming Series A Preferred Shares or, at the right valuation, issue common stock to redeem Series A Preferred Shares.”

CareCloud is also proud to announce the re-appointment of A. Hadi Chaudhry, John N. Daly, Mahmud Haq, and Cameron P. Munter to the Board. Hadi Chaudhry, President and CEO, first joined CareCloud in October 2002 as Manager of IT, then later served as General Manager and CIO before serving as Vice President of Global Operations, and then President, prior to being appointed CEO in 2021. John N. Daly has over 50 years of experience in the financial services industry, including 23 years at E.F. Hutton where he served as an EVP and member of the Board of Directors. Mahmud Haq is the founder of CareCloud, and prior to founding the company held prestigious positions as CEO and President of Compass International Services Corporation and as Vice President of Global Risk Management for American Express. Cameron P. Munter joined CareCloud’s Board of Directors in June 2013. He previously served as U.S. Ambassador to Pakistan and has held a variety of high-profile diplomatic positions in Iraq, as well as having served as U.S. Ambassador to Serbia and U.S. Deputy Chief of Mission to Poland.

“We are pleased to announce the re-election of Mahmud, Hadi, John and Cameron,” said CareCloud’s Chief Strategy Officer, Stephen Snyder. “Our shareholders maintain confidence in Mahmud and Hadi, who have brought CareCloud to $140 million in revenue over the last two decades, as well as the leadership of our professional, veteran board members, who provide governance as we expand operations and focus on organic growth.”

The final voting tallies from this year’s annual meeting were included in a Form 8-K which was previously filed with the Securities and Exchange Commission.

About CareCloud
CareCloud (Nasdaq: MTBC, MTBCO, MTBCP) 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, telehealth and patient experience management (PXM) at www.carecloud.com.

Follow CareCloud on LinkedIn, Twitter and Facebook.

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,” “should,” “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” 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 the Covid-19 pandemic 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. In addition, there is uncertainty about the spread of the Covid-19 virus and the impact it may have on the Company’s operations, the demand for the Company’s services, and economic activity in general.

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:
Bill Korn
Chief Financial Officer
CareCloud
bkorn@carecloud.com

Investor Contact:
Gene Mannheimer
ICR Westwicke
CareCloudIR@westwicke.com

Media Inquiries:
Kaitlyn Mode
Corporate Communications Manager
CareCloud
kmode@carecloud.com

FAQ

What was decided during the CareCloud shareholders' meeting on June 1, 2022?

The shareholders re-elected board members and voted to increase authorized shares of common and preferred stock.

What are the new limits for CareCloud's authorized shares?

Common stock increased to 35 million shares and preferred stock to 15 million shares.

Who were re-elected to CareCloud's Board of Directors in 2022?

A. Hadi Chaudhry, John N. Daly, Mahmud Haq, and Cameron P. Munter were re-elected.

How will the increase in authorized shares potentially benefit CareCloud?

It enables management to recapitalize effectively and could reduce dividend expenses.

What is the stock symbol for CareCloud?

CareCloud's stock symbols are MTBC, MTBCP, and MTBCO.