By Susanna Moon
Chicago, July 1 – Medical Transcription Billing, Corp. said it doubled the number of its authorized shares of preferred stock to 2 million shares from 1 million shares.
The increased number of preferred shares was approved at a shareholder meeting held June 22, according to a company notice.
“Increasing our authorized preferred stock provides MTBC with the flexibility to raise capital as needed for acquisitions or growth in the manner which is most beneficial for our shareholders,” Mahmud Haq, MTBC’s chairman and chief executive officer, said in the release.
“With an effective shelf registration statement, and additional authorized preferred shares, MTBC will have the ability to issue more series A preferred stock, which is not convertible, to fund acquisitions and growth.”
As announced Nov. 3, 2015, the company priced $5.1 million of 11% series A cumulative redeemable perpetual preferred stock, or 204,000 preferreds for $25 each.
The underwriters then exercised $700,000 of the $765,000 over-allotment option, brining the total proceeds to $5.8 million.
Medical Transcription Billing is a Somerset, N.J.-based provider of health-care information technology company.
Original issue terms
| Issuer: | Medical Transcription Billing, Corp.
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| Issue: | Series A cumulative redeemable perpetual preferred stock
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| Amount: | $5.8 million (including $700,000 greenshoe exercise)
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| Shares: | 204,000
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| Price: | $25
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| Dividends: | 11%, payable monthly
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| Bookrunners: | Chardan Capital Markets, LLC (lead) and Boenning & Scattergood, Inc.
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| Call option: | After Nov. 4, 2020 and upon a change of control
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| Settlement date: | Nov. 9, 2015
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| Listing: | Nasdaq: MTBCP
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