4,300,000 shares of CareCloud, Inc. (Nasdaq: CCLD) common stock are now pledged to Citizens Bank, N.A. under a Securities Account Pledge Agreement executed July 22, 2026, satisfying a post-closing condition on a $50 million credit facility. The facility, arranged with Citizens Bank as administrative agent and Provident Bank as co-lender, consists of a $40 million term loan and a $10 million revolving credit line. As consideration for providing that collateral, CareCloud issued Executive Chairman Mahmud Haq a warrant to purchase the same 4,300,000 shares at a $5.00 exercise price over a five-year term.
Collateral structure and control mechanics
Haq and two family trusts, one he controls and one his wife controls, pledged securities accounts holding those shares, held and maintained at Citizens Securities Inc. as the named securities intermediary. A companion Securities Account Control Agreement, also dated July 22, gives Citizens, as administrative agent, the right to deliver a notice of exclusive control to Citizens Securities following a default and the expiration of a 15-business-day cure period. After receiving that notice, Citizens Securities must follow Citizens' entitlement orders under UCC Section 8-102(a)(8), which may direct the transfer or sale of the pledged stock.
Haq and the trusts retain voting rights and dividend entitlements on the pledged shares until Citizens delivers that notice of exclusive control. The 15-business-day window is the only cure buffer between an uncured default and Citizens' ability to take control of the accounts.
Release conditions
The pledge carries two exit paths. It terminates upon the later of the second anniversary of the credit facility's closing date or the date CareCloud certifies a consolidated leverage ratio at or below 1.25 to 1.00. Full repayment of the secured obligations also ends it. The 1.25x ceiling makes the collateral's release a balance-sheet metric, not solely a calendar function.
Warrant terms
The five-year warrant vests in monthly installments over 12 months and carries customary anti-dilution provisions. It also includes a net share settlement feature, which lets Haq take delivery in net shares rather than cash on exercise. At $5.00 per share across 4,300,000 shares, the aggregate notional exercise value is $21.5 million. CareCloud filed the 8-K/A on July 24, 2026, signed by Norman Roth, Interim Chief Financial Officer and Corporate Controller, amending the original 8-K filed April 14, 2026.