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Private Equity
selwaycapital.com

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Investments

10

Portfolio Exits

1

About Selway Capital

Selway Capital is a private equity investment firm led by a team of former operators and investment professionals with vast experience in successfully investing in, building and exiting middle market companies. Selway makes control-oriented investments in industries in which its principals have a track record of creating value for investors including security and defense, communications and media, and education. The firm was launched in 2009 as a spinout of a team from SCP Partners, a multi-stage private equity firm with over $800 million under management based in Wayne, Pennsylvania.Selway Capital continues to manage several portfolio companies on behalf of SCP Partners and its affiliate Selway Partners in addition to sponsoring multiple investment activities. To view these companies, please visit the profile page of SCP Partners.

Selway Capital Headquarter Location

900 Third Ave 19th Floor

New York, New York, 10022,

United States

646-421-6666

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Latest Selway Capital News

Selway signs definitive agreement to enter into business combination with HCCA

Feb 1, 2013

Published on January 31, 2013 at 9:46 PM· No Comments Selway Capital Acquisition Corporation (OTCBB: SWCA, SWCAW, SWCAU) announced today that it has signed a definitive agreement to enter into a business combination with Healthcare Corporation of America, Inc. (HCCA), which is one of the fastest growing PBM's in the market. Upon closing, Selway will change its name to Healthcare Corporation of America. Management expects the closing to occur by mid-March 2013, subject to the satisfaction of closing conditions specified in more detail in the Current Report on Form 8-K to be filed by Selway. Selway does not require shareholder approval to close the transaction. The combined company plans to conduct a post-closing tender offer so its public shareholders have the opportunity to convert their shares and participate in the transaction. The combined company will file the necessary documents with the Securities and Exchange Commission within thirty days after the closing of the business combination. Business Overview Healthcare Corporation of America is a rapidly growing pharmacy benefit manager, or PBM. Its mission is to reduce prescription drug costs for clients while improving the quality of drug care. It administers prescription drug benefits programs for employers who contract with it in order to provide this component of healthcare benefits to their employees. A growing customer base includes commercial clients of various sizes and industries, business associations and trade groups, local government entities, labor unions, charitable and non-profit organizations, and third-party administrators of self-insured benefit plans. The business model is firmly based on price transparency and proactive benefit cost management. The company operates in the marketplace under the name of its subsidiary, Prescription Corporation of America, or PCA. HCCA has its headquarters in Denville, New Jersey. HCCA has experienced rapid growth since operating under its current business model. In its first year in the market, 2010, the company booked approximately $358,469 of revenue. In 2011, it reached $28.2 million of revenue. Pending results of its audit, the company is expected to have approximately $38.4 million of revenue in 2012. Selway's management expects significant revenue growth of the combined company to continue in 2013, with revenue expected to be at least $80 million. "We told our investors that we would find a fast growing company to merge with. This was not about finding an acquisition, but rather about finding a growth story in a large market. We have found that company in HCCA," said Yaron Eitan, the President and CEO of Selway. The Transaction The current owners of HCCA will receive the following consideration: Consideration at Closing 5,200,000 common shares of Selway Capital Acquisition Corporation. Notes with an aggregate principal amount of $10 million will be issued by Selway, with $7.5 million going to HCCA shareholders and $2.5 million going to certain members of the HCCA management team. The notes do not bear interest and are to be repaid from 25% of the combined company's free cash flow above $2 million. 1,500,000 Selway common shares will be issued as management incentive shares to certain members of the HCCA management team, vesting in three equal installments of 500,000 in each of September 2013, June 2014 and June 2015. 592,500 Selway common shares will be issued to holders of HCCA's preferred stock, and up to 592,500 additional Selway common shares may be issued to holders of HCCA promissory notes with an aggregate face value of $5,925,000 at the note holders' election subject to the terms of the notes. The company's strategic partner, a third party administrator of benefit plans, will receive warrants to purchase an aggregate of 85,000 Selway common shares at an exercise price of $7.50 per share in exchange for cancellation of outstanding warrants to purchase up to 2,000,000 HCCA common shares at an exercise price of $1.00 per share. The combined company is also authorized, but not required, to issue: (i) incentive warrants to purchase an aggregate of 175,000 Selway common shares at an exercise price of $7.50 per share to a strategic partner, a third party administrator of benefit plans; and (ii), incentive warrants to purchase 15,000 Selway common shares at an exercise price of $10.00 per share for every $10,000,000 in new receivables generated by certain customers of the company. Related Stories

Selway Capital Investments

10 Investments

Selway Capital has made 10 investments. Their latest investment was in GenePeeks as part of their Seed VC - II on July 7, 2014.

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Selway Capital Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

7/10/2014

Seed VC - II

GenePeeks

$1.29M

No

1

2/20/2014

Debt

GenePeeks

$1M

No

1

6/14/2013

Seed VC

Square1

$0.55M

Yes

1

10/27/2012

Seed VC

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$99M

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10

12/11/2002

Convertible Note

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$99M

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10

Date

7/10/2014

2/20/2014

6/14/2013

10/27/2012

12/11/2002

Round

Seed VC - II

Debt

Seed VC

Seed VC

Convertible Note

Company

GenePeeks

GenePeeks

Square1

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Amount

$1.29M

$1M

$0.55M

$99M

$99M

New?

No

No

Yes

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Co-Investors

Sources

1

1

1

10

10

Selway Capital Portfolio Exits

1 Portfolio Exit

Selway Capital has 1 portfolio exit. Their latest portfolio exit was Chalkable on October 18, 2016.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

10/18/2016

Acquired

3

Date

10/18/2016

Exit

Acquired

Companies

Valuation

Acquirer

Sources

3

Selway Capital Team

1 Team Member

Selway Capital has 1 team member, including current Managing Partner, Yaron Eitan.

Name

Work History

Title

Status

Yaron Eitan

Managing Partner

Current

Name

Yaron Eitan

Work History

Title

Managing Partner

Status

Current

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