CVF Capital Partners Exits its Investment in Custom Power

U.K.-based Solid State PLC Expands its U.S. Operations

FOUNTAIN VALLEY, CA (August 15, 2022) – CVF Capital Partners (“CVF”) exited its investment in Custom Power, LLC (“Custom Power” or the "Company”). CVF Capital Partners invested a combination of subordinated debt and equity financing from the Central Valley Fund III in November 2019 to support the Company through a transition from its legacy owners and capitalize on the increasing adoption of complex battery solutions. Solid State PLC (“Solid State”), the acquirer, found Custom Power to be a strong strategic fit to their existing suite of offerings and the acquisition expands their foothold in the US market.

Custom Power is an award-winning designer, assembler, and manufacturer of custom battery-pack assemblies. The company’s customized power-packs are critical components for the aerospace and defense, industrial, healthcare, and security markets. Custom Power utilizes its proprietary technology and highly-skilled engineers to design and assemble safe, high-power, and efficient power-packs that are developed to match the clients’ cutting-edge needs.

CVF supported independent sponsor Elan Growth Partners (“Elan”), in the acquisition of the Company in late 2019. True to their beliefs that investor-management partnership is key, CVF and Elan have worked closely with management to help navigate the complex pre and post-COVID environment.

“We have been very pleased with our partnership with CVF and Elan,” said Mel Weis, CEO of Custom Power. “The team served a crucial role in navigating important strategic and financial decisions. With their support, Custom Power was able to grow throughout this period, designing custom power solutions that address increasingly complex challenges.”

According to Jose Blanco, Managing Partner at CVF Capital Partners, “Mel and the team served as great leaders and partners throughout the last three years. Their dedication and technical expertise allowed us to be comfortable as Custom Power grew into the company it is today. It has been a pleasure working with them and we look forward to seeing their future success within Solid State.”

Craig Dupper, Elan’s Managing Partner noted, “It has been a pleasure to partner with CVF in support of the Custom Power management team over the past three years. Mel and his team worked diligently to expand and diversify their business and continue to build and refine engineering capabilities. We’re excited for their future and wish them continued success as part of Solid State.”

For economic terms of the transaction, please refer to the Solid State public press release here.

About Custom Power

Custom Power is a manufacturer of highly customized as well as off-the-shelf energy solutions for portable and stationary products used in medical, defense, aerospace, industrial, and green energy markets. Since 1965, Custom Power has continued to invest in and acquire the knowledge to design and manufacture the most sophisticated modern battery assemblies. They offer custom design for alkaline, NiMH, NiCd, primary lithium, and the latest lithium-ion or lithium-polymer batteries. For additional information about Custom Power, please visit www.custompower.com/.

About CVF Capital Partners

CVF Capital Partners was established in 2005 to finance later stage growth and buyouts through mezzanine and preferred equity investments and manages over $385 million in committed capital. The fund has offices in Davis, CA and San Diego, CA. It is focused on making investments in growing businesses in the lower middle-market of the Western United States. For more information, please visit www.cvfcapitalpartners.com.

About Elan Growth Partners

Headquartered in Park City, Utah, Elan Growth Partners invests in lower middle market companies operating in the precision manufacturing, niche software, business services, and food sectors that seek to accelerate growth and unlock embedded enterprise value. As an independent sponsor, Elan Growth Partners invests $5-25 million of equity per transaction, helping businesses evolve to the next level. For more information about Elan, please visit www.elangrowth.com.

For more information contact:

Jose Blanco Managing Partner Email: jblanco@cvfcapitalpartners.com Phone: 530-757-7004 ext. 227

CVF Capital Partners Makes Co-Investment with DCA Partners in Bonafide Medical Group

Bonafide Medical Group Expands Operations

THOUSAND OAKS, CA (August 17, 2022) – Bonafide Medical Group (“Bonafide”), a leading business workflow management and facility portal for the Durable Medical Equipment (“DME”) and Home Medical Equipment (“HME”) industries, announced today a joint investment from CVF Capital Partners (“CVF”) and DCA Capital Partners (“DCA”).

Steve Mills, Partner at DCA, said, “It is an honor to partner with a rapidly growing company led by a talented management team. Their continuous innovation has resulted in steady growth with a client pipeline that’s stronger than ever. We hope to build on that success by helping Bonafide take advantage of previously untapped opportunities. Partnering with CVF will help Bonafide continue their growth.”

Jose Blanco, Founding and Managing Partner at CVF, said “We are excited to be partnering with DCA on this investment. DCA originally invested in Bonafide with the goal of further extending Bonafide’s features and functionality and to expand its distribution channels. We hope to help support this expansion.”

“We have been extremely impressed with Mark Ludwig, Bonafide’s CEO, on his vision and execution; we look forward to working with Mark, Bonafide, and the DCA team in this investment,” said Brian Hoblit, Vice President at CVF Capital Partners.

About Bonafide Medical Group

Bonafide Medical Group (“Bonafide”) is a cloud-based healthcare information technology company. With 40 years of experience in healthcare, Bonafide provides enterprise resource planning platforms that provide comprehensive management solutions in the acute and post-acute care settings. Bonafide was founded in 1981 and is based in Thousand Oaks, California. For more information, please visit www.bonafide.com.

About CVF Capital Partners

CVF Capital Partners (“CVF”) was established in 2005 to finance later-stage growth, recaps, and buyout opportunities across the lower middle market. CVF invests both mezzanine debt and preferred equity and has raised $385 million in committed capital across its three funds. The firm focuses on supporting small businesses undergoing a ownership transition or looking for growth throughout the broader Western United States. For more information, please visit www.cvfcapitalpartners.com.

About DCA Partners

DCA Partners (“DCA”) provides capital to growth-oriented, middle-market businesses in under-served communities across California and other western states. DCA partners with top-quality owners and management teams, providing the capital and expertise needed to successfully expand their businesses. For more information, please visit www.dcapartners.com/.

For More Information, Contact:

Jose Blanco, Managing Partner

CVF Capital Partners

Tel: (530) 757-7004

Email: jblanco@cvfcapitalpartners.com

CVF Capital Partners Supports the Acquisition of Cordant Health Solutions

FLAGSTAFF, AZ (April 10, 2023) – CVF Capital Partners (“CVF”) supported the acquisition of the Toxicology Direct Bill (“Direct Bill”) division of Cordant Health Solutions (“CHS”). The Direct Bill division provides drug testing and lab services for parole agencies, probation and drug courts as well as medication-assisted and abstinence clinics. As part of the transaction, CVF co-invested with DCA Capital Partners (“DCA”) to acquire CHS from a financial institution, who has been the owner since 2013. The other two divisions are the Toxicology Clinical and Pharmacy divisions, which did not form part of this transaction. The Direct Bill division experienced continuous growth in the last 15 years and have expanded to cover clients in 46 different States in the US. The carve-out will retain the name and logo of Cordant Health Solutions.

Steve Mills, Founder and Partner at DCA, said, “We are excited to partner up with a strong management team that has decades of experience in the industry and have built an organization that is ready to scale. The Company has a strong record of delivering their lab services to clients in better than industry average turnaround times thanks to its advanced IP capabilities to track millions of samples a year as well as its best-in-class lab specialists.”

José Blanco, a Founder and Managing Partner at CVF Capital Partners, said, “Cordant is essential in monitoring drug use and ensuring compliance with court-ordered drug treatment programs. Its services will continue to be needed to track the presence of new and dangerous illegal drugs that are constantly entering the market. The Company plays a critical role in preventing drug use, protecting public health, and ensuring safety in the society. The increase in the consumption of these drugs over the years has led to an increase in drug testing to treat and help increase the number of returning citizens to society and reduce if not abate recidivism. We are also excited about continuing working in another transaction with DCA after partnering up for an investment in Bonafide Medical Group last year.”

Brian Hoblit, Principal at CVF Capital Partners said, “We like the industry given the recession resistant aspect about it as well as reliable customer base where some of them had a contractual relationship with Cordant for up to 17 years. There are also different growth opportunities that we hope we can assist management to accomplish them during the holding period.”

About Cordant Health Solutions

Cordant Health Solutions is a leading US-based provider of medication monitoring and drug testing services. Founded in 1997, Cordant offers a wide range of testing solutions, including urine, saliva, and hair drug testing, as well as genetic testing and medication monitoring. Their services are used in addiction treatment centers, pain management clinics, behavioral health facilities, and drug courts, and are staffed by highly trained scientists and technicians who use the latest technology to provide accurate and reliable test results. To learn more, please visit www.cordantsolutions.com.

About DCA Partners

DCA Partners is an alternative asset manager and advisory firm based in Sacramento, CA. DCA’s private equity fund is focused exclusively on investing in and acquiring profitable growth businesses in partnership with great management teams. To learn more, please visit www.dcapartners.com.

About CVF Capital Partners

CVF Capital Partners was established in 2005 to finance later-stage growth, recaps, and buyout opportunities across the lower middle market. CVF invests both mezzanine debt and preferred equity and has raised $385 million in committed capital across its three funds. The fund has offices throughout California in Davis and San Diego. This geography allows the firm to attend to small businesses seeking capital throughout the broader Western United States. To learn more, please visit www.cvfcapitalpartners.com.

For More Information, Contact:

Jose Blanco, Managing Partner

CVF Capital Partners

Tel: (530) 757-7004

Email: jblanco@cvfcapitalpartners.com