Capstone Holding retires $1.9M debt

Capstone Holding announced the exchange of $1.9M in debt by a related party for a newly issued series of non-convertible preferred equity. This strategic deleveraging retires 100% of the targeted debt and lowers 2026 interest expense by more than $170k. The transaction strengthens Capstone’s balance sheet and leverage profile, providing greater financial flexibility to pursue accretive acquisitions. Importantly, no new common shares were issued. The preferred equity is non-dilutive, leaving the common share count unchanged and preserving value for existing shareholders.