Capstone Holding (CAPS) investor relations material

Company overview and business model

• Operates a leading building products distribution network, primarily through Instone, the largest wholesale distributor of thin veneer masonry products in the U.S., serving both residential and commercial construction markets.

• Strategic focus on expanding geographic presence, enhancing product portfolio, operational excellence, customer-centricity, and innovation, including the launch of the Toro® manufactured stone line.

• Controlled by Brookstone Partners, a private equity group with deep expertise in building products investment and M&A.

• Recent acquisition of Carolina Stone Holdings expands operations in the Southeast U.S.

Financial performance and metrics

• Instone's revenues increased from approximately $32.2 million in 2020 to $44.9 million in 2024.

• As of June 30, 2025, net tangible book value (deficit) was $(7,435,772), or $(1.38) per share; after the offering, as-adjusted net tangible book value (deficit) would be $(0.77) per share.

• Immediate dilution to new investors is $1.52 per share.

Use of proceeds and capital allocation

• Will not receive proceeds from resale of shares by the selling stockholder.

• May receive up to $10 million in gross proceeds from sales of convertible notes, to be used for acquisition costs, fees, working capital, and general corporate purposes.

• Management has broad discretion in the use of proceeds from any future note issuances.