Medical Transcription Billing plans $10 million add-on to 11% cumulative redeemable preferreds

By Stephanie N. Rotondo

Seattle, Dec. 1 – Medical Transcription Billing Corp. registered $10 million additional 11% series A cumulative redeemable perpetual preferred stock (Nasdaq: MTBCP) in an S-1 filed with the Securities and Exchange Commission on Thursday.

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. On July 7, the company sold another $1.58 million of the preferreds.

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 will be used to complete payment for the acquisition of the assets of MediGain, LLC and its subsidiary, Millennium Practice Management, LLC, as well as to potentially complete other acquisitions, to fund organic growth initiatives and general corporate purposes.

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

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