Capstone Holding Corp. (NASDAQ:CAPS) has announced the closing of a $10 million convertible note facility, with an initial $3 million draw to support its M&A strategy. The financing will back Capstone's expansion into a high-growth Southeastern U.S. market, facilitated by a deal under a letter of intent. This transaction marks a significant step for Capstone as it targets a full-year revenue run-rate of $100 million through a combination of organic growth and strategic acquisitions. The facility, which has an 8.34% original issue discount and a 7.0% annual interest rate, will mature on July 29, 2026, and is convertible into Capstone shares at $1.72 per share. Joseph Gunnar & Co., LLC served as the exclusive placement agent for this offering.
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