CareCloud's Early Resumption of Preferred Stock Dividends
Accelerated Timeline Reflects Strong Financial Performance
CareCloud, Inc. (the Company) (NASDAQ: CCLD, CCLDO, CCLDP), a forefront leader in healthcare information technology and generative AI solutions, is excited to announce a strategic decision made by its Board of Directors to promptly resume dividend payments on its Series A and Series B Cumulative Redeemable Perpetual Preferred Stock. This early action is thanks to the company’s robust ability to drive free cash flow.
Stephen Snyder, Co-Chief Executive Officer of CareCloud, expressed his delight by stating, “We are thrilled to have reached this important milestone ahead of schedule. We greatly appreciate our shareholders for their steadfast support. We foresee an exciting year as we advance our profitability and free cash flow targets, all while steering towards growth.”
Current Redemption Value Overview
To illustrate the current standing, should the company exercise its redemption right today, holders of Series A Preferred Stock would receive approximately $28.17 per share, which reflects the redemption value of $25 along with accumulated dividends of $3.17. Conversely, the holders of Series B Preferred Stock would be entitled to about $28.43 per share, inclusive of the current redemption price of $25.75 and accumulated dividends of $2.68.
These financial figures come from detailed assessments provided in the public filings with the Securities and Exchange Commission (SEC), which outline the specifics regarding both the Series A and Series B Preferred Stock.
Declared Dividends for Early 2025
The Board has officially declared dividends for January and February 2025. For the Series A Preferred Stock, dividends are determined at a standard effective monthly rate of 1/12th of 11% which includes catch-up payments to accommodate prior months where dividends accumulated at 11% per annum. Following the payment of dividends for these months, the Board intends to revert to a monthly dividend of 1/12th of 8.75% per annum after approximately 8 months of higher effective rates.
For the Series B Preferred Stock, dividends will proceed based on an effective monthly rate of 1/12th of 8.75% per annum. The declared dividends for January and February 2025 are set at $0.18229 for each month, payable on specified dates, along with a catch-up payment for Series A at $0.04688 per share.
Details Regarding Ex-Dividend Dates
The ex-dividend date for January is set for January 30, with the record date on January 31 and the payment date on February 18, 2025. For February, the ex-dividend date is February 27, the record date is February 28, and payment on March 17, 2025.
Additional Information on Preferred Stock
Investors holding Series A Preferred Stock can expect cumulative cash dividends at an annual rate of 8.75% based on a $25 liquidation preference, which translates to $2.1875 per share annually. Additionally, during the transition period, the Board authorized extra payments to compensate for the retraction of dividends previously accrued at a higher percentage, reflecting the Company’s commitment to its shareholders.
Understanding Cumulative Payments
It's essential to note that dividends on both Series A and Series B stocks are cumulatively payable on the 15th of each month unless necessitated to move due to non-business days. Holders will receive these payments based on their record status on the last day of the fiscal month.
About CareCloud and Its Preferred Stocks
CareCloud's Series A and Series B Preferred Stocks are traded on the Nasdaq Global Market under the ticker symbols CCLDP and CCLDO. The Company retains the option to redeem shares of its Preferred Stocks with appropriate notice as outlined in its stockholder agreements. The redemption pricing and mechanics are clearly stipulated in further company disclosures to ensure all shareholders remain informed.
By providing transparency into our operations and financial health, CareCloud strives to maintain investor confidence while fostering an environment conducive to growth and innovation in healthcare solutions.
Final Thoughts on CareCloud’s Future
As CareCloud moves forward with these initiatives, their focus remains on pioneering advancements in healthcare technology, which includes comprehensive management solutions that enhance operational efficiency and improve patient experiences.
Frequently Asked Questions
What led to the early resumption of dividend payments?
The early resumption of dividends is due to the Company’s significant growth in free cash flow and overall financial performance.
What are the new dividend rates?
Dividends for Series A Preferred Stock are set at a monthly rate of 11% for 8 months, then revert to 8.75%, while Series B dividends will be 8.75% per annum.
What is the current redemption value for holders of the Preferred Stock?
If redeemed, Series A shareholders would receive approximately $28.17 per share and Series B shareholders about $28.43 per share.
Are these dividends cumulative?
Yes, dividends for both Series A and Series B Preferred Stocks are cumulative and paid monthly.
How does CareCloud plan to sustain shareholder value?
CareCloud aims to sustain shareholder value by focusing on profitability, cash flow growth, and strategic innovations in health technology.
