CareCloud, Inc. announced on March 6, 2025, the mandatory conversion of 3.54 million shares of its 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock into common stock. Each preferred share was converted into 7.3358 shares of common stock, including accumulated and unpaid dividends.
This conversion is expected to generate over $10 million in annual cash savings on preferred stock dividends compared to pre-conversion obligations. Dividends on the converted shares ceased to accrue on the mandatory exchange date.
The move provides CareCloud with a cleaner capital structure and increased flexibility to reinvest capital into growth initiatives. This strategic financial restructuring aims to create value for shareholders by reducing ongoing dividend burdens.
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