Capstone Secures Up To $10 Million Financing Facility - Supports Acquisition Strategy
Capstone Holding Corp. (NASDAQ:CAPS) has secured a $10 million convertible note facility to support its M&A strategy, with an initial draw of $3 million completed on July 29, 2025. The facility includes a 7% annual interest rate, 8.34% original issue discount, and matures on July 29, 2026, with shares convertible at $1.72 per share.
The initial funds will finance the acquisition of a Southeast U.S.-based distributor of thin veneer stone and hardscape materials, currently under a non-binding 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 Holding Corp. (NASDAQ:CAPS) ha ottenuto una linea di credito convertibile da 10 milioni di dollari per supportare la sua strategia di fusioni e acquisizioni, con un prelievo iniziale di 3 milioni di dollari completato il 29 luglio 2025. La linea prevede un tasso d'interesse annuo del 7%, uno sconto all'emissione dell'8,34% e scade il 29 luglio 2026, con azioni convertibili a 1,72 dollari per azione.
I fondi iniziali finanzieranno l'acquisizione di un distributore di pietra sottile a impiallacciatura e materiali per paesaggistica con sede nel sud-est degli Stati Uniti, attualmente oggetto di una lettera d'intenti non vincolante. Questa espansione segna l'ingresso di Capstone in uno dei mercati edilizi in pi霉 rapida crescita, sfruttando sinergie nella distribuzione e nella logistica. L'azienda mantiene l'obiettivo di raggiungere un fatturato annuo di 100 milioni di dollari attraverso la crescita organica e acquisizioni strategiche.
Capstone Holding Corp. (NASDAQ:CAPS) ha asegurado una facilidad de nota convertible de 10 millones de d贸lares para apoyar su estrategia de fusiones y adquisiciones, con un desembolso inicial de 3 millones de d贸lares completado el 29 de julio de 2025. La facilidad incluye una tasa de inter茅s anual del 7%, un descuento original del 8,34% y vence el 29 de julio de 2026, con acciones convertibles a 1,72 d贸lares por acci贸n.
Los fondos iniciales financiar谩n la adquisici贸n de un distribuidor del sureste de Estados Unidos de piedra delgada para chapado y materiales para paisajismo, actualmente bajo una carta de intenci贸n no vinculante. Esta expansi贸n marca la entrada de Capstone en uno de los mercados de construcci贸n de m谩s r谩pido crecimiento, aprovechando sinergias en distribuci贸n y log铆stica. La compa帽铆a mantiene su objetivo de alcanzar una tasa de ingresos de 100 millones de d贸lares mediante crecimiento org谩nico y fusiones y adquisiciones estrat茅gicas.
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Capstone Holding Corp. (NASDAQ:CAPS) a obtenu une facilit茅 de billet convertible de 10 millions de dollars pour soutenir sa strat茅gie de fusions et acquisitions, avec un tirage initial de 3 millions de dollars r茅alis茅 le 29 juillet 2025. Cette facilit茅 inclut un taux d'int茅r锚t annuel de 7 %, un escompte 脿 l'茅mission de 8,34 % et arrive 脿 茅ch茅ance le 29 juillet 2026, avec des actions convertibles 脿 1,72 dollar par action.
Les fonds initiaux financeront l'acquisition d'un distributeur bas茅 dans le sud-est des 脡tats-Unis sp茅cialis茅 dans les pierres fines en placage et les mat茅riaux d'am茅nagement paysager, actuellement sous une lettre d'intention non contraignante. Cette expansion marque l'entr茅e de Capstone sur l'un des march茅s de la construction 脿 la croissance la plus rapide, tirant parti des synergies en distribution et logistique. L'entreprise maintient son objectif d'atteindre un chiffre d'affaires annuel de 100 millions de dollars gr芒ce 脿 la croissance organique et aux fusions-acquisitions strat茅giques.
Capstone Holding Corp. (NASDAQ:CAPS) hat eine wandlungsf盲hige Kreditfazilit盲t in H枚he von 10 Millionen US-Dollar gesichert, um seine M&A-Strategie zu unterst眉tzen, wobei am 29. Juli 2025 eine erste Auszahlung von 3 Millionen US-Dollar erfolgte. Die Fazilit盲t umfasst einen j盲hrlichen Zinssatz von 7 %, einen urspr眉nglichen Emissionsabschlag von 8,34 % und l盲uft am 29. Juli 2026 aus, wobei die Aktien zu 1,72 US-Dollar pro Aktie wandelbar sind.
Die anf盲nglichen Mittel werden zur Finanzierung des Erwerbs eines im S眉dosten der USA ans盲ssigen Distributors von d眉nnem Furnierstein und Hardscape-Materialien verwendet, der sich derzeit in einer unverbindlichen Absichtserkl盲rung befindet. Diese Expansion markiert Capstones Eintritt in einen der am schnellsten wachsenden Baum盲rkte und nutzt Synergien in Vertrieb und Logistik. Das Unternehmen h盲lt an seinem Ziel fest, durch organisches Wachstum und strategische M&A einen Umsatz von 100 Millionen US-Dollar zu erreichen.
- Secured $10 million convertible note facility with favorable 7% interest rate
- Initial $3 million draw completed to support Southeast U.S. acquisition
- Strategic expansion into high-growth construction market
- Targeting $100 million full-year revenue run-rate
- Flexible financing structure allows for future drawdowns with minimal dilution
- 8.34% original issue discount on the facility
- Potential dilution from $1.72 per share conversion option
- Acquisition target still under non-binding LOI, not finalized
Insights
Capstone secured $10M financing facility to fund acquisitions, demonstrating investor confidence while minimizing immediate dilution.
Capstone has secured a
The deal terms reveal a strategic balancing act: the
What's particularly noteworthy is how this facility supports Capstone's articulated
The structure as a convertible note facility rather than pure equity or debt demonstrates financial sophistication 鈥� it provides immediate capital with future flexibility while creating a template for subsequent capital raises. This approach helps Capstone maintain acquisition momentum while managing its capital structure through what appears to be a deliberately paced expansion strategy in the building products distribution space.
Capstone's financing facility enables execution of Southeast expansion while maintaining financial discipline in their roll-up strategy.
This financing facility represents a pivotal enabler for Capstone's roll-up strategy in the fragmented building products distribution market. The immediate
The transaction architecture reveals sophisticated deal-making: by establishing a facility rather than a one-time financing, Capstone creates a repeatable framework for future acquisitions while maintaining flexibility. This approach allows them to pursue opportunities with greater speed 鈥� a crucial advantage when competing for founder-led acquisition targets.
Their stated focus on businesses that are "immediately accretive to earnings" suggests a disciplined valuation approach rather than growth-at-any-cost. By targeting companies with operational synergies in distribution, freight logistics, and service delivery, Capstone appears to be building an integrated platform rather than simply collecting disparate businesses.
The involvement of Joseph Gunnar & Co. as placement agent adds institutional credibility to this expansion phase. With the building products sector experiencing consolidation, Capstone's methodical approach 鈥� expanding geographically while focusing on specialized product categories like thin veneer stone 鈥� suggests a deliberate strategy to create defensible market positions rather than undifferentiated scale. This financing provides both the capital and the template to execute this vision.
Initial
NEW YORK CITY, NEW YORK / / July 30, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today announced the closing of a
The proceeds from the initial draw will be used primarily to fund of a Southeast U.S. -based distributor of thin veneer stone and hardscape materials. That transaction is currently under a non-binding letter of intent.
"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. Capstone is committed to growing with discipline, and this facility gives us the speed and flexibility to do that without compromising our capital structure," said Matt Lipman, CEO of Capstone Holding. He went further to say "This approach also aligns with our long-term strategy: investing in high-quality acquisitions that are immediately accretive to earnings, while preserving liquidity and minimizing dilution. This transaction helps us take the next step toward entering a high-growth Southeastern market with a proven local operator."
Key terms of the facility include an original issue discount of
Joseph Gunnar & Co., LLC acted as the exclusive placement agent for this offering.
This transaction 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 that benefit from Capstone's scale, supply chain infrastructure, and proprietary brand portfolio. The pending acquisition would mark Capstone's expansion into one of the fastest-growing construction markets in the country, with clear synergies in distribution, freight logistics, and service delivery.
The company continues to target a full-year revenue run-rate of
About Capstone Holding Corp.
Capstone Holding Corp. (NASDAQ:CAPS) is a diversified platform of building products businesses focused on distribution, brand ownership, and acquisition. Capstone's Instone subsidiary currently serves 31 U.S. states, offering proprietary lines of stone veneer, hardscape materials, and modular masonry systems. Capstone's strategy combines operational efficiency, disciplined capital deployment, and brand control to build a scalable, high-margin platform.
Forward-Looking Statements
This press release contains certain "forward-looking statements". These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events. Investors can find many (but not all) of these statements by the use of words such as "may," "will," "expect," "anticipate," "estimate," "intend," "plan," "believe," or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent events or circumstances, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure investors that such expectations will turn out to be correct, and the Company cautions that actual results may differ materially from anticipated results. Additional factors are discussed in the Company's public filings with the Securities and Exchange Commission, available for review at .
Investor Contact:
[email protected]
SOURCE: Capstone Holding Corp.
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FAQ
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