CareCloud expands common stock availability

CareCloud, Inc. (NASDAQ:CCLD), a provider of healthcare IT solutions with a market capitalization of $67.5 million and impressive year-to-date gains of 11.5%, announced on Monday an amendment to its certificate of incorporation, effectively increasing the number of authorized shares of common stock from 35 million to 85 million. This change was approved by shareholders at a special meeting held on January 27, 2025, and the amendment was filed with the Secretary of State of Delaware on February 5, 2025.

The expansion of common stock availability is a strategic move that could potentially facilitate future corporate activities, including but not limited to, fundraising efforts, stock-based compensation, and other business development initiatives. According to InvestingPro data, the company maintains a GREAT financial health score and analysts have set price targets ranging from $3.50 to $7.00, suggesting potential upside. The company’s filing indicated that the amendment was detailed in a proxy statement filed on December 5, 2024, and became effective immediately upon filing with the state of Delaware.

CareCloud, previously known as MTBC, Inc. and Medical (TASE:PMCN) Transcription Billing, Corp, is headquartered in Somerset, New Jersey, and operates under the SIC code for prepackaged software services. The company’s common stock, along with its 8.75% Series A and Series B Cumulative Redeemable Perpetual Preferred Stock, is listed on the Nasdaq Global Market under the symbols CCLD, CCLDP, and CCLDO, respectively.

The SEC filing also included a safe harbor statement, cautioning that any forward-looking statements are not guarantees of future performance and actual results may differ materially. The company emphasized that it does not have an obligation to update any forward-looking statements post-publication. For investors seeking deeper insights, InvestingPro offers 12 additional investment tips for CCLD and a comprehensive Pro Research Report, providing detailed analysis of the company’s fundamentals and growth prospects.

Investors and stakeholders can refer to the company’s SEC Form 8-K for the complete details of the amendment. This filing serves as the source for the information reported in this article.

In other recent news, healthcare technology solutions provider CareCloud has been downgraded from Buy to Neutral by Roth/MKM due to a weak growth outlook for 2025, despite recent cost-cutting measures. This reassessment follows CareCloud’s third-quarter earnings report, which revealed a slight dip in revenue to $28.5 million but a substantial increase in adjusted EBITDA to $6.8 million. The company also reported a significant improvement in free cash flow, reaching $10.3 million.

On a strategic front, CareCloud has been focusing on leveraging artificial intelligence through its CareCloud CirrusAI platform and launching an in-house remote patient monitoring solution. These are recent developments that aim to drive growth and operational efficiency for the company.

Roth/MKM’s downgrade reflects lowered revenue forecasts for 2025, despite an increase in CareCloud’s cash generation due to cost-cutting measures. However, the company’s financial performance has positioned it to consider resuming payment of its preferred dividends in March 2025. The company’s future growth is anticipated to be driven by strategic partnerships and advancements in AI and remote patient monitoring.

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