Selected Portfolio Companies

Cypress Sharpridge Investments, Inc.

Cypress Sharpridge Investments, Inc. is a specialty finance company created with the objective of achieving consistent risk-adjusted investment income. The company invests on a leveraged basis in Agency RMBS collateralized by fixed rate single-family residential mortgage loans, ARMs, or hybrid ARMs. HCP purchased equity during the sub-prime crisis when the company's stock was illiquid and traded in the portal market.

GSI Group Inc.

GSI Group manufactures precision motion products, lasers, and laser systems for the global medical, semiconductor, electronics, and industrial markets. Hale Capital participated with co-investors Tennenbaum Capital Partners, Goldman Sachs, and Highbridge Capital in recapitalizing the company via a voluntary plan of reorganization announced in 2009 and completed in 2010.

LocationLogic LLC

LocationLogic provided hosted location-based infrastructure software and applications to Tier 1 wireless carriers. Autodesk contributed the assets to Hale Capital and Hale Global in January 2009 in exchange for a retained interest. Within a challenging situation, HCP drafted documentation, completed diligence, and signed definitive agreements for a complex transaction in a matter of days, and closed without an executive team during turbulent market times. These actions and HCP's subsequent turnaround, earned HCP an award by M&A Advisor for the 2010 Turnaround of the Year. Telecommunications Systems, Inc. (Nasdaq: TSYS) acquired LocationLogic for $25 million in May 2009.

Midway Gold Corp.

Midway Gold Corp., an exploration stage company, engages in the acquisition, exploration, and development of mineral properties in North America. Its principal properties include the Spring Valley, Midway, Pan, and Gold Rock gold and silver mineral properties located in Nevada; and the Golden Eagle gold mineral property located in Washington. HCP provided working capital for Midway to advance its projects.

NWM Mining Corporation

NWM Mining Corporation engages in the acquisition, exploration, and development of mineral properties, with a focus on gold in Mexico. HCP provided working capital for NWM to advance its projects into production.

Paradigm Holdings Inc.

Paradigm Holdings provides comprehensive information technology and cybersecurity solutions for federal government enterprises. Hale Capital recapitalized the company in February 2009, providing preferred equity with warrants and subordinated debt.

PrimeEnergy Corp.

PrimeEnergy Corporation, through its subsidiaries, engages in the acquisition, exploration, development, and production of crude oil and natural gas in the United States. Its primary properties are located in Texas, Oklahoma, West Virginia, the Gulf of Mexico, New Mexico, Colorado, and Louisiana. The company also provides well-servicing support operations, site-preparation, and construction services for oil and gas drilling and reworking operations, as well as contract services for third parties. HCP invested equity in the business.

RX Gold & Silver Inc.

RX Gold & Silver Inc. operates as a gold and silver exploration and development company. The company’s strategy is to develop gold projects within North America that have previously reached advanced exploration, underground development, or past gold production. It is currently focused on re-starting production from its Drumlummon Mine, an epithermal underground gold and silver mine in Montana. The company is headquartered in Winnipeg, Canada

Telanetix Inc.

Telanetix Inc., is a leading communications service provider offering next generation voice services to the business market through voice over IP (VoIP). The company's voice offerings give business customers a flexible calling solution, a simple installation experience, and advanced PBX functionality at a low price. HCP recapitalized the company in July 2010 by purchasing $30 million of senior debt at a discount and converting the discount to equity to assume majority ownership.

United Silver Corp

USC is a vertically integrated mining company with operations in Idaho, USA. It has earned, through development and operations, an 80% interest in the Crescent Silver Mine project in Idaho's prolific Silver Belt - directly between two of the world's historically largest silver producing properties, the Sunshine and Bunker Hill mines. USC also offers a full suite of mining services including contract mining and mine machine repair and fabrication services to silver miners in the district.