Under the new arrangement, Healthcare Triangle will issue approximately 2.8 million shares of common stock to SecureKloud. In return, the company reclaims all rights to 1.6 million shares of Series B preferred stock originally issued in 2024. This move effectively untangles a conversion impasse created by a pair of reverse stock splits, which had slashed the underlying conversion value from an initial 16 million common shares down to a mere 1,071.

While the market reacted positively to the news, the stock remains under significant pressure, having shed 95% of its value year to date. The transaction hinges on final approval from Healthcare Triangle stockholders to proceed with the exchange.