Capstone Holding (CAPS) investor relations material

Company overview and business model

• Operates a technology-enabled building products distribution and installation platform across 38 U.S. states and two Canadian provinces through three subsidiaries focused on stone and masonry products.

• Offers over 3,000 SKUs via nine distribution centers, serving masonry dealers, contractors, builders, and homeowners in residential and commercial construction.

• Business strategy centers on geographic expansion, product portfolio enhancement, operational excellence, customer-centricity, and innovation, including proprietary product launches.

• Recent acquisitions in Canada and the U.S. Southeast have expanded the footprint and product offerings, supporting both organic and acquisition-driven growth.

• Integrated supply chain and scalable infrastructure support efficient operations and future expansion.

Financial performance and metrics

• Instone subsidiary revenue grew from $32.2 million in 2020 to $44.2 million in 2025.

• Fraser Canyon Holdings Inc. (CSI) reported $16.4 million in net revenue for 2024.

• As of March 31, 2026, net tangible book value (deficit) was $(9.0) million, or $(0.96) per share; after the offering, as-adjusted net tangible book value (deficit) would be $(7.4) million, or $(0.47) per share.

• Unaudited financials indicate substantial doubt about ability to continue as a going concern due to recurring losses, negative working capital, and upcoming debt maturities.

Use of proceeds and capital allocation

• Will not receive proceeds from resale of shares by the selling stockholder; any proceeds from warrant exercise (~$4,050) will be used for working capital and general corporate purposes.

• Management has broad discretion over use of proceeds from any future convertible note issuances, primarily for general corporate purposes and working capital.