Investment Criteria

Incyte Capital considers investments throughout the U.S. and Canada in companies in any industry sector, with particular interest in telecommunications, developed technology and software, healthcare, selected energy, basic industries and selected consumer products.

What sets Incyte apart is its keen focus on the stage of development and capital funding needs of its investment prospects. Incyte is interested in established companies which are experiencing temporary illiquidity, insolvency, or suboptimal ownership, and considering new funding leading to a change of control. Specific criteria are detailed below.

STAGE:

Turnaround Growth, Restart or Ownership Recapitalization

BUSINESS CRITERIA:

Proven product with existing customers and recurring revenues

FINANCIAL PERFORMANCE:

At or near cash flow breakeven within a one to three month time period

INVESTMENT SIZE:

Private:

Public:

$10 million to $50 million in equity

Up to $100 million total transaction size

TYPE OF SECURITY:

Typically Common Stock, although may position investment at any point in the capital structure, up to and including Senior Secured Debt. We typically do not use Preferred Stock.

OWNERSHIP:

Control position, with management

INVESTMENT HORIZON:

Very flexible - two to ten years, although may be as short as twelve months