CareCloud, Inc. 8-K

What Happened

• CareCloud filed an 8‑K disclosing that on April 13, 2026 it entered a Credit Agreement providing a $40.0 million term loan facility and a $10.0 million revolving credit facility (total $50.0M) with Citizens Bank, N.A. (agent) and Provident Bank. The term loan and revolver each mature on the fourth anniversary of closing and the term loan begins equal monthly principal amortization on June 1, 2026. Interest is based on Term SOFR, Daily Simple SOFR or an alternate base rate plus a margin. The debt is guaranteed by certain subsidiaries and secured by substantially all assets.
• The company also entered an At‑The‑Market (ATM) Offering Agreement on April 13, 2026 with Citizens JMP Securities, LLC to sell up to $60.0 million of common stock from time to time under its effective Form S‑3 shelf (prospectus supplement filed April 14, 2026). Citizens JMP will receive a 3.0% commission on sales.

Key Details

• Credit Facility: $40.0M term loan + $10.0M revolving credit; 4‑year maturity; term loan amortizes monthly starting June 1, 2026.
• ATM program: up to $60.0M of common stock; 3.0% sales commission; sales optional and at company discretion under Form S‑3.
• Collateral & guarantees: obligations guaranteed by certain subsidiaries and secured by substantially all assets; post‑closing pledge by Executive Chairman Mahmud Haq expected within 45 days.
• Chairman consideration: Mahmud Haq will pledge certain securities accounts and, in connection therewith, receive a warrant to purchase 4,300,000 shares at $5.00/share (5‑year term, customary anti‑dilution and net‑settlement features).

Why It Matters

• Liquidity and flexibility: The new $50M credit facility plus the $60M ATM gives CareCloud near‑term borrowing capacity and an on‑demand equity option to fund operations, potential acquisitions, repay debt, and redeem preferred stock (including the stated redemption of the 8.75% Series B preferred).
• Potential dilution and security interests: Equity sold under the ATM and exercise of the 4.3M‑share warrant would dilute existing shareholders. The credit facility is secured by substantially all assets and supported by subsidiary guarantees and a personal pledge by the Executive Chairman, which increases creditor protection and priority.
• Investor focus: Retail investors should monitor actual ATM sales (timing and amount), any filings showing the pledged securities/warrant, and the company’s use of proceeds (especially redemption of higher‑cost preferred stock and repayment terms), as these affect capital structure, cash flow, and share count.