Medical Transcription Billing selling $1.58 million more of its 11% cumulative preferred stock

By Stephanie N. Rotondo

Seattle, July 7 – Medical Transcription Billing Corp. plans to sell $1,576,000 of its 11% series A cumulative redeemable perpetual preferred stock (Nasdaq: MTBCP) in a reopening, according to a prospectus filed with the Securities and Exchange Commission on Thursday.

Boenning & Scattergood, Inc. is the underwriter.

Dividends are payable on the 15th day of each month. The preferreds become redeemable Nov. 4, 2020 at par plus accrued dividends.

The preferreds are also redeemable upon a change of control.

Proceeds may be combined with additional cash and other considerations for one or more acquisitions. Any remaining funds will be used for organic growth initiatives and general corporate purposes.

The issuer originally sold $5.1 million of the preferreds on Nov. 3, 2015 at par and later exercised a $690,400 greenshoe, lifting the issue to $5.8 million.

Medical Transcription is a Somerset, N.J.-based health care information technology company.

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