WATERSIDE CAPITAL CORPORATION

WATERSIDE CAPITAL CORPORATION

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Company Overview
The company, founded in 1993, is an investment business that invests in debt securities including senior debt and junior debt with warrants. Its corporate office is located in Norfolk, Virginia.
The primary focus of the company’s investment strategy is to provide mezzanine capital to the smaller middle-market companies headquartered primarily in the Mid-Atlantic market. Its preferred investment size is USD 500,000 to USD 3 million and is generally structured in the form of mezzanine debt (subordinated or junior) with attached warrants (for the future purchase of common equity ownership). It can also participate in and arrange larger financings.
As of early 2009, the company’s investment portfolio included Servient, AmeriComm Direct Marketing, LaserNation, AnswerLIVE, Foxhall Capital Management, Inc., Fire King International, Inc., New Dominion Pictures, Rileen Innovative Technologies, Inc., Decipher, Peace Frogs, EPM Development Systems, Inc., Triangle Biomedical Sciences, Inc., and International Wood, LLC. Servient gives attorneys an innovative solution to handle paper and electronic discovery. AmeriComm Direct Marketing is a direct marketing and business communications company. LaserNation operates two laser tag arenas in Sterling, Virginia, and Baltimore, Maryland. AnswerLIVE provides call center and professional answering services throughout southeast U.S. Foxhall Capital Management manages investments for private investors and institutions throughout the United States. Fire King International designs, manufactures and sells fireproof file cabinets, fireproof safes, electronically operated combination locks, and cash handling safes. New Dominion Pictures is an independent television production company. Rileen Innovative Technologies is a leading provider of biometric solutions for the government and private industries. Decipher is a privately-held company that manufactures and distributes board games and trading card games. Peace Frogs is a Virginia-based apparel retailer that markets the Peace Frogs brand. EPM Development Systems designs, manufactures and distributes products for the medical, sleep disorder, and fitness markets. Triangle Biomedical Sciences is a North Carolina-based company offering a full line of sophisticated equipment and supplies to histology markets around the world. Lastly, International Wood makes wood blind and shutter components.
Business Summary
Waterside Capital Corporation (Waterside) is a closed-end investment company licensed by the Small Business Administration (SBA) as a Small Business Investment Corporation (SBIC). The Company makes equity investments in, and provides loans to, small business concerns to finance their growth, expansion and development. The Company’s primary business is investing in and lending to privately owned businesses through investments in subordinated debt, preferred stock and common stock. Substantially all of the Company’s investments in subordinated debt securities and preferred stock also include detachable warrants or conversion features. Most of the Company’s portfolio investment companies are located in the Mid-Atlantic region of the United States. In addition, four of the Company’s portfolio investment companies are in the manufacturing industry. At June 30, 2008, the Company’s loans and investments had a fair value of $20.9 million.
Description and history
Waterside Capital Corporation (Waterside), incorporated on July 13, 1993, is a closed-end investment company licensed by the Small Business Administration (SBA) as a Small Business Investment Corporation (SBIC). The Company makes equity investments in, and provides loans to, small business concerns to finance their growth, expansion and development. The Company’s primary business is investing in and lending to privately owned businesses through investments in subordinated debt, preferred stock and common stock. Substantially all of the Company’s investments in subordinated debt securities and preferred stock also include detachable warrants or conversion features. Most of the Company’s portfolio investment companies are located in the Mid-Atlantic region of the United States. In addition, four of the Company’s portfolio investment companies are in the manufacturing industry. At June 30, 2008, the Company’s loans and investments had a fair value of $20.9 million.

The Company’s preferred investment size is $500,000 to $3 million and is generally structured in the form of mezzanine debt (subordinated or junior) with attached warrants (for the future purchase of common equity ownership). Waterside Capital can also participate in and arrange larger financings. It also provides senior debt term debt. The Company invests in various sectors, such as service, manufacturing, telecommunications, healthcare, information technology, media and others. The majority of the Company’s operating income is derived from dividend and interest income on portfolio investments and application and processing fees related to investment originations. The remaining portion of the Company’s operating income is obtained through interest earned on cash and cash equivalents.

Business Line
Investment business that invests in debt securities including senior debt and junior debt with warrants
Subsidiary
AMERICOMM DIRECT MARKETING
Advisor
WITT MARES & CO., PLC
IPO date
1/1998
US SIC Code
6726
Company Address
Suite 800
500, East Main Street
City province or state postal code
23510, NORFOLK, VA
Phone: +1 757 626 1111
Fax: +1 757 626 0114
Country address: UNITED STATES OF AMERICA
Website url: www.watersidecapital.com