Capstone Secures $10 Million Financing Facility, Supports Acquisition Strategy

Capstone Holding Corp. has secured a $10 million convertible note facility to support its acquisition strategy. The company has drawn down $3 million, which will be used to fund the acquisition of a Southeast U.S.-based distributor of thin veneer stone and hardscape materials. The facility has an original issue discount of 8.34%, an interest rate of 7.0% per annum, and a maturity date of July 29, 2026.

Capstone Holding Corp. (NASDAQ:CAPS) has secured a $10 million convertible note facility to support its acquisition strategy. The company has drawn down $3 million, which will be used to fund the acquisition of a Southeast U.S.-based distributor of thin veneer stone and hardscape materials. The facility includes an original issue discount of 8.34%, an interest rate of 7.0% per annum, and a maturity date of July 29, 2026 [1].

The initial funds will finance the acquisition of a Southeast U.S.-based distributor, currently under a non-binding letter of intent (LOI). This expansion marks Capstone's entry into one of the fastest-growing construction markets, leveraging synergies in distribution and logistics. The company maintains its target of achieving a $100 million revenue run-rate through organic growth and strategic M&A.

Capstone's CEO, Matt Lipman, stated, "We are pleased that investors have reviewed our team and strategy and elected to provide a valuable convertible note facility to help finance our previously announced M&A strategy. This facility gives us the speed and flexibility to grow without compromising our capital structure."

The convertible note facility, structured by Joseph Gunnar & Co., LLC, reflects investor confidence in Capstone's growth trajectory and the long-term value of equity participation. Capstone continues to pursue an active pipeline of acquisition targets, with a focus on founder-led businesses in high-growth markets.

References:
[1] https://www.stocktitan.net/news/CAPS/capstone-secures-up-to-10-million-financing-facility-supports-18gfnivakk34.html