Capstone Companies, Inc. announced that two members of management have extended a $750,000 working capital unsecured credit line to the Company. Interest on any money advanced under this loan accrues simple annual interest of 1%. Principal and accrued interest are due in a single balloon payment at maturity date, which is June 30, 2021, but the maturity date can be extended to December 31, 2021 at option of the company. The lenders are Stewart Wallach, company’s Chief Executive Officer and Director, and Jeffrey Postal, a company director. The company was unsuccessful in 2020 in obtaining a firm commitment for working capital financing on commercially reasonable terms and conditions from traditional and non-traditional lending sources. Due to the impact of Coronavirus/COVID-19 pandemic and the decreasing revenues of the Company’s core LED lighting products brought on by the imposed tariffs in 2019, and the new Smart Mirror product line not scheduled for rollout until 2021 as a replacement revenue source, the company projects that it will need the working capital credit line for operational overhead from time to time in 2021. Under the loan agreement for the credit line, Mr. Wallach and Mr. Postal have each received 7,500 shares of company Series B-1 Convertible Preferred Stock, $0.0001 par value, which shares of Series B Stock are consideration for making an unsecured and low interest credit line to the company and have no voting rights but are convertible at option of holder into shares of company common Stock, $0.0001 par value, at a conversion ratio of 66.66 to 1. Series B Stock also converts into shares of Common Stock in the event of a merger or similar transaction. The loan agreement also provides piggyback registration rights for any shares of common Stock issued upon conversion of the Series B Stock. Mr. Wallach and Mr. Postal both own more than 19% of issued shares of company common stock.