Capstone extends senior convertible note maturity
Capstone Holding Corp. entered into a First Amendment with its institutional investor to its July 2025 senior secured convertible note, extending the note’s maturity date from July 29, 2026 to August 29, 2026.
Rhea-AI Filing Summary
Capstone Holding Corp. entered into a First Amendment with its institutional investor to its July 2025 senior secured convertible note, extending the note’s maturity date from July 29, 2026 to August 29, 2026. The amendment applies specifically to this July 2025 Convertible Note.
That note was issued on July 29, 2025 under a securities purchase agreement authorizing up to $10,909,885 in senior secured convertible notes, each issued with an 8.34% original issue discount. The July 2025 Convertible Note has an original principal amount of approximately $3,272,966.
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8-K Event Classification
2 items: 1.01, 9.01
2 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Aggregate principal of Convertible Notes: $10,909,885
Original issue discount: 8.34%
July 2025 Convertible Note principal: $3,272,966
+1 more
4 metrics
Aggregate principal of Convertible Notes
$10,909,885
Maximum original principal amount authorized under securities purchase agreement dated July 29, 2025
Original issue discount
8.34%
Discount on each senior secured convertible note under the Purchase Agreement
July 2025 Convertible Note principal
$3,272,966
Approximate original principal of first Convertible Note issued July 29, 2025
Maturity date extension
From July 29, 2026 to August 29, 2026
Revised maturity of July 2025 Convertible Note under First Amendment dated July 29, 2026
Key Terms
senior secured convertible notes, original issue discount, Material Definitive Agreement, Inline XBRL
4 terms
senior secured convertible notes financial
"authorized the issuance of senior secured convertible notes to the Buyer"
A senior secured convertible note is a loan a company issues that sits near the top of its repayment order (senior), is backed by specific assets as collateral (secured), and can be swapped into company shares later (convertible). For investors this matters because it combines lower risk of repayment and legal protection from the collateral with the upside of converting into equity—so it affects both the safety of debt holders and potential dilution for shareholders.
original issue discount financial
"each such note being issued with a 8.34% original issue discount"
Original issue discount (OID) is the difference between a debt security’s face value and the lower price at which it is first sold, treated as additional interest that accrues over the life of the instrument. For investors it matters because OID raises the effective yield and changes taxable income and the holding’s cost basis over time — think of buying a $100 voucher for $90 and recognizing the $10 gain as earned interest as the voucher approaches maturity.
Material Definitive Agreement regulatory
"Item 1.01. Entry into a Material Definitive Agreement."
A material definitive agreement is a legally binding contract that creates major, long‑term obligations or rights for a company, such as loans, asset sales, mergers, or supplier deals. Think of it like a mortgage or lease for a business: it can change future cash flow, risk and control, so investors watch these agreements closely because they can materially affect a company’s value, financial health and stock price.
Inline XBRL technical
"Cover Page Interactive Data File (embedded within the Inline XBRL document)"
Inline XBRL is a file format for financial filings that embeds machine-readable data tags directly inside the human-readable report, so the same document can be read by people and parsed by software. For investors it makes extracting, comparing and verifying financial numbers faster and more reliable—like a grocery list where each item also has a barcode—reducing manual errors and speeding up analysis.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What material agreement did Capstone Holding (CAPS) report?
Capstone Holding reported a First Amendment to its July 2025 senior secured convertible note with an institutional investor, extending that note’s maturity. The amendment modifies terms of an existing Material Definitive Agreement rather than creating a new financing structure.
How did the First Amendment affect CAPS’s July 2025 Convertible Note maturity?
The First Amendment extends the July 2025 Convertible Note’s maturity date from July 29, 2026 to August 29, 2026. This provides an additional month before the senior secured convertible note becomes due under its existing financing arrangement.
What is the total principal authorized under CAPS’s convertible note purchase agreement?
The securities purchase agreement authorizes senior secured convertible notes with aggregate original principal of up to $10,909,885. This framework governs multiple potential notes, including the July 2025 Convertible Note that was specifically amended to extend its maturity date.
What are the key terms of the July 2025 Convertible Note for CAPS?
The July 2025 Convertible Note was issued on July 29, 2025 with original principal of about $3,272,966 and an 8.34% original issue discount. Its maturity, originally July 29, 2026, has been extended to August 29, 2026 by the First Amendment.
What discount applies to Capstone Holding (CAPS) senior secured convertible notes?
Each senior secured convertible note issued under the securities purchase agreement carries an 8.34% original issue discount. This means notes are issued below their original principal amount, with the stated principal used for repayment and conversion calculations.
AI-generated analysis. How Rhea-AI works. Not financial advice.
