Mar. 30 at 1:34 PM
BIG CAPITAL RESTRUCTURING for
$CGEH
Capstone just executed a major clean-up move—effectively reshaping its post-Chapter 11 cap table and pushing Goldman out of control.
Key breakdown:
• Replaced Goldman’s ~37.5% preferred stake with:
–
$80M perpetual pref @ 5% (no maturity, convertible @
$5)
–
$37.5M PIPE equity at
$4.50
Net effect:
Yes, dilution—but structurally similar to what Goldman already held. The real story is control shift + cleaner structure.
What matters:
• Stronger path to NASDAQ uplisting (target filing within 12 months)
• Cleaner cap table = easier institutional access
• Potential upside if execution improves over next 2–3 years
Watch this clause:
If the pref lingers 5 years + grows past
$45M, holders can take board control & force a sale
Translation:
Management is betting they can fix the business fast, land DC deals, and potentially exit before giving up control/value.
High risk, but if they deliver? The upside window just got a lot more interesting.