CareCloud secures $50 million credit facility, enters ATM agreement

CareCloud, Inc. (NASDAQ: CCLD) announced it entered into a $50 million credit facility and an at-the-market offering agreement on April 13, 2026, according to a company filing.

The credit facility consists of a $40 million term loan and a $10 million revolving credit line arranged with Citizens Bank, N.A. as administrative agent and Provident Bank as a lender. Both facilities mature four years from the closing date, with the term loan requiring equal monthly principal payments beginning June 1, 2026.

Interest rates on the borrowings will be based on Term SOFR, Daily Simple SOFR or an alternate base rate, plus applicable margins. The facility includes standard financial covenants and is secured by substantially all company assets and guaranteed by certain subsidiaries.

Within 45 days of closing, Executive Chairman Mahmud Haq will pledge securities accounts as additional collateral. In exchange, Haq will receive a warrant to purchase 4.3 million shares of common stock at $5.00 per share. The warrant has a five-year term and includes anti-dilution provisions and net share settlement features.

CareCloud stated the credit facility proceeds will fund general corporate purposes, including redemption of outstanding 8.75% Series B Cumulative Redeemable Perpetual Preferred Stock.

The company also entered into an at-the-market offering agreement with Citizens JMP Securities, LLC, allowing CareCloud to sell up to $60 million of common stock from time to time. Citizens JMP will receive a 3.0% commission on gross proceeds from shares sold under the agreement.

The shares will be offered under an effective shelf registration statement and through a prospectus supplement filed April 14, 2026. Sales may occur through The Nasdaq Global Market or other existing trading markets for the company's common stock.

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