secwatch.observer — SEC 8-K summary
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Issuer:     Capstone Holding Corp. (CAPS)
CIK:        0000887151
Form:       8-K
Filed at:   2025-08-04T23:59:59+00:00
Accession:  0001213900-25-071366
Event type: debt
Sentiment:  positive
Materiality: 0.75
Item codes: 1.01, 2.03, 3.02, 8.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Capstone Holding enters $10.9M convertible note facility; $3M initial draw for acquisition
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- Company entered securities purchase agreement for up to $10.9M aggregate principal convertible notes with 8.34% OID; first note issued for ~$3.27M principal, gross proceeds $3.0M.
- Convertible at $1.72/share, 7% annual interest, matures July 29, 2026; stockholder approval for issuance above 19.99% obtained July 27, 2025.
- Proceeds from initial draw to fund previously announced acquisition of a Southeast U.S. thin veneer stone and hardscape distributor under non-binding LOI.
- Beneficial ownership conversion limit set at 4.99% unless increased to 9.99% by buyer; Joseph Gunnar acted as placement agent with 7% cash fee.
- Company targets full-year revenue run-rate of $100M through organic growth and M&A.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/887151/000121390025071366/0001213900-25-071366-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/887151/000121390025071366/ea0251365-8k_capstone.htm
  HTML page:      https://secwatch.observer/filing/0001213900-25-071366

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