MEDICAL TRANSCRIPTION BILLING, CORP. (NASDAQ:MTBC) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement
On January 3, 2017, Medical Transcription Billing, Corp. (MTBC)
and MTBC Acquisition, Corp. (MAC), a wholly owned subsidiary of
MTBC, entered into a First Amendment to its Assignment Agreement
dated as of October 3, 2016 with The Prudential Insurance Company
of America and Prudential Retirement Insurance and Annuity
Company (together Prudential).
to the Assignment Agreement, MAC acquired senior secured notes
from Prudential that were secured by the assets of MediGain, LLC,
a Texas limited liability company, and its affiliate Millennium
Practice Management Associates, LLC, a New Jersey limited
liability company. The total purchase price for the senior
secured notes was $7,000,000. to the Assignment Agreement, MTBC
paid $2,000,000 of the purchase price at closing and agreed to
pay the remaining $5,000,000 within 90 days thereafter. Please
see MTBCs Current Report on Form 8-K filed on October 5, 2016 for
more information regarding the Assignment Agreement.
to the First Amendment to the Assignment Agreement, the parties
agreed that the remaining $5,000,000 will be payable in two
installments. The first installment of $3,000,000 will be due by
January 23, 2017 and the second installment of $2,000,000 will be
due by May 15, 2017. Commencing January 3, 2017, interest will
accrue on the outstanding amount of the second installment at a
rate of 18% per annum, with interest payable monthly, until the
second installment is paid in full. In connection with this
amendment, MTBC and MAC agreed to provide Prudential a general
release of claims, and Mahmud Haq, the founder, principal
stockholder, Chairman of the Board, and Chief Executive Officer
of MTBC, agreed to guarantee the obligations of MTBC and MAC to
Prudential through a pledge of his stock in MTBC.
The First Amendment to the Assignment Agreement should be read in
conjunction with the Assignment Agreement, a copy of which was
attached as Exhibit 10.1 to MTBCs Current Report on Form 8-K
filed on October 5, 2016.
The foregoing description of the First Amendment to Assignment
Agreement does not purport to be complete and is qualified
entirely by reference to the complete text of such document, a
copy of which is attached as an exhibit to this Current Report on
Form 8-K and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
2.1 First Amendment to Assignment Agreement, dated as of January
3, 2017, by and among Medical Transcription Billing, Corp., MTBC
Acquisition, Corp., The Prudential Insurance Company of America
and Prudential Retirement Insurance and Annuity Company.
About MEDICAL TRANSCRIPTION BILLING, CORP. (NASDAQ:MTBC)
Medical Transcription Billing, Corp. is a healthcare information technology company that provides an integrated suite of Web-based solutions, together with related business services, to healthcare providers practicing in ambulatory care settings. The Company’s offering, PracticePro, allows healthcare practices with the core software and business services on Software-as-a-Service (SaaS) platform. PracticePro includes practice management software and related tools, which facilitate the day-to-day operation of a medical practice; electronic health records (EHR), which allow its customers to qualify for government incentives; revenue cycle management (RCM) services, which include medical billing, analytics and related services, and mobile Health (mHealth) solutions, including smartphone applications that assist patients and healthcare providers in the provision of healthcare services. The Company offers a clearinghouse service, which allows clients to track claim status. MEDICAL TRANSCRIPTION BILLING, CORP. (NASDAQ:MTBC) Recent Trading Information
MEDICAL TRANSCRIPTION BILLING, CORP. (NASDAQ:MTBC) closed its last trading session up +0.090 at 0.750 with 33,287 shares trading hands.