Loan & DebtJul 24, 2026, 05:06 PM
CareCloud Chairman Pledges 4.3M Shares for Credit Facility
AI Summary
CareCloud, Inc. announced that its Executive Chairman, Mahmud Haq, and two trusts pledged 4,300,000 shares of the company's common stock as additional collateral for the previously disclosed $40 million term loan and $10 million revolving credit facility. In consideration for this pledge, Mr. Haq received a warrant exercisable for 4,300,000 shares at a strike price of $5.00 per share. This arrangement secures the Credit Facility and outlines conditions for the pledge's termination.
Key Highlights
- Mahmud Haq and two trusts pledged 4,300,000 shares of CareCloud common stock.
- Shares serve as additional collateral for a $40 million term loan and $10 million revolving credit facility.
- Mr. Haq received a warrant exercisable for 4,300,000 shares.
- The warrant has a strike price of $5.00 per share and a five-year term.
- Pledge remains until the later of two years from closing or consolidated leverage ratio below 1.25:1.00.
Price Impact
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