Shares of Healthcare Triangle rose after the company entered a securities exchange agreement related to its acquisition of SecureKloud Technologies' assets.

The stock gained 9.8% to $2.24 in after-hours trading on Friday. At market close, shares had slid 95% year to date.

Healthcare Triangle agreed to issue about 2.8 million shares of its common stock to SecureKloud in exchange for all of SecureKloud's right, title and interest in the 1.6 million shares of Series B preferred stock that Healthcare Triangle had previously issued under a 2024 agreement.

At the time of issuance, the Series B Preferred Stock was convertible into 16 million shares of Healthcare Triangle's common stock, having a market value of about $7.2 million, the company said.

However, after issuing and prior to obtaining stockholder approval for the conversion, Healthcare Triangle effected two reverse stock splits, which reduced the number of shares of common stock underlying the preferred stock to 1,071. That meant SecureKloud was unable to convert the stock and realize the value of the consideration it received under the agreement.

The closing of the new securities exchange agreement is subject to stockholder approval.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

June 26, 2026 17:32 ET (21:32 GMT)

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