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CareCloud Announces Commencement of Public Offering of Preferred Stock

SOMERSET, N.J., Jan. 27, 2022 (GLOBE NEWSWIRE) -- CareCloud, Inc. (Nasdaq: MTBC) (Nasdaq: MTBCP), a leader in healthcare technology solutions for medical practices and health systems nationwide, today announced the commencement of a $25 million underwritten public offering of its non-convertible Series B Cumulative Redeemable Perpetual Preferred Stock with liquidation preference of $25.00 per share (“Series B Preferred Stock”). In connection with the offering, CareCloud expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the Series B Preferred Stock offered in the public offering.

B. Riley Securities, Inc., Ladenburg Thalmann & Co. Inc., and EF Hutton, division of Benchmark Investments, LLC, are acting as book-running managers for the offering. Aegis Capital Corp., The Benchmark Company, LLC, Boenning & Scattergood, Inc., Chapin Davis Investments, Colliers Securities LLC and Maxim Group LLC will be acting as co-managers for the offering.

CareCloud intends to use the net proceeds from the offering, if completed, for redemption of a portion of its 11% Series A Cumulative Redeemable Perpetual Preferred Stock, with up to $7.5 million of net proceeds reserved for working capital, general corporate purposes and growth initiatives, including potential future acquisitions.

The Company has filed an application to list the Series B Preferred Stock on the Nasdaq Global Market under the symbol “MTBCO.” If the application is approved, trading of the Series B Preferred Stock is expected to begin within 30 days after the initial delivery of shares to the underwriters.

The proposed public offering is being made pursuant to an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission (the “SEC”). The proposed public offering will be made only by means of a prospectus supplement and the accompanying base prospectus. Copies of the preliminary prospectus supplement and the accompanying base prospectus may be obtained for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, copies of the preliminary prospectus may be obtained from the offices of B. Riley Securities, Inc. at 1300 North 17th Street, Suite 1300, Arlington, VA 22209 or by calling (703) 312-9580 or by emailing prospectuses@brileyfin.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities being offered, nor shall there be any sale of the securities being offered in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.