Initial $3 Million Close Facilitates Announced Southeast, U.S. Based Deal Under LOI

NEW YORK CITY, NEW YORK / ACCESS Newswire / July 30, 2025 / Capstone Holding Corp. (NASDAQ:CAPS), a national building products distribution platform, today announced the closing of a $10 million convertible note facility on July 29, 2025, which will be initially used to provide valuable additional financing capacity to support its previously announced M&A strategy. It has drawn down $3 million of the facility and may access the remaining capital on terms to be mutually agreed. The structure of this financing - and the additional capacity it provides - brings Capstone a strong institutional partner and a template for future drawdowns to support its acquisition strategy and other general corporate purposes.

The proceeds from the initial draw will be used primarily to fund the previously announced acquisition 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.