MTBC back to issuing more preferred shares:
MTBC Inc. (MTBC) shares rose 10% to $10.81 after the company began an underwritten public offering of 800,000 shares of its non-convertible 11% Series A cumulative redeemable perpetual preferred stock at a proposed price of $25 a share.
The medical technology company said that in connection with the offering, it expects to grant the underwriters a 30- day option to purchase up to an additional 15% of the Series A preferred stock offered in the public offering.
Holders of shares of Series A preferred stock are entitled to receive cumulative cash dividends at the rate of 11% per annum of the $25 a share liquidation preference, equivalent to $2.75 per annum per share.
MTBC (MTBC) said it intends to use the net proceeds from the offering, if completed, for working capital, general corporate purposes and growth initiatives, including potential future acquisitions.
