Market Overview

Advantage Capital Invests in Ohio-Based RXQ Compounding, LLC


RXQ looks to create as many as 100 jobs in rural Ohio, highlighting
significant economic impact of the Ohio Rural Business Growth Program

Advantage Capital today announced a nearly $3.6 million investment in
RXQ Compounding, LLC, an FDA-approved outsourcing facility that
manufactures medical formularies and medications used in physician
offices and hospitals across the country, located in Athens County, one
of Ohio's hardest hit rural areas.

The investment, including $1 million in equity under the Ohio Rural
Business Growth (RBG) program, will help RXQ expand its new Albany
manufacturing facility, increase research and development, and create as
many as 100 jobs. In an area where more than one in every four people is
unemployed, job creation of this magnitude shows the significant impact
the RBG program will have on Ohio's rural communities.

"RXQ is a perfect example of what the Ohio Rural Business Growth program
was designed to do: ensure businesses in our rural communities have
access to the capital they need to grow and promote economic
development," said State Representative Jay Edwards. "The company's
extensive job creation and expansion is the exact impact we are looking
for, helping to create investment, opportunity and economic vitality in
our small towns and rural communities that have too often been left

This first investment in the RBG program comes at a time when
traditional private equity funds have historically overlooked
opportunities to invest in rural America. Since
2000, only 1% of venture capital has been invested in rural small

"We are passionate about growing the company in Ohio and developing a
robust workforce in Athens County," said Ed Zatta, CEO of RXQ. "This
investment is critical to our expansion and ability to not only increase
R&D, but also create 100 new high-paying jobs in our community. We fully
expect to become the largest employer in the county, offering highly
accessible jobs and investing in training to ensure our employees gain
the foundation necessary to succeed in a growing industry."

Founded in 2015 out of the Ohio University Innovation Center, RXQ is
focused on addressing the growing demand for compounded pharmaceuticals.
Many of its medications are everyday products required for patient care,
such as the local anesthetic lidocaine. The company currently ships to
38 states and compounds more than 160 formularies, all of which are in
high demand in hospitals and clinics.

Compounding facilities are one of the fastest growing areas in the
healthcare industry, due to the rise of chronic diseases and increasing
need from patients that cannot be treated with mass-produced
FDA-approved medications. In
2002, less than 20% of hospitals elected to outsource any compounding
needs. By 2017, 75% of hospitals were outsourcing these needs, and
demand continues to grow

"We are excited to expand our portfolio in Ohio and help move the
state's economy forward through innovation, business expansion and job
creation. With RXQ, we utilized our full toolkit of investment
capabilities to support the company's growth plans, and we applaud its
success and commitment to creating local jobs," said Chris Harris,
senior vice president at Advantage Capital.

Along with the Ohio RBG program, the investment was also made in
connection with the federal New Markets Tax Credit program. Both were
designed to increase the flow of capital into disadvantaged communities,
growing businesses and creating jobs and opportunity in areas where
access to capital and private investment is hard to find.

"By partnering with state and federal economic development programs,
we're able to provide both cost-effective debt capital and flexible,
long-term equity capital to meet the unique needs of companies like RXQ.
We are excited to replicate this investment model in support of other
rural businesses across Ohio that need growth capital," said Harris.

About Advantage Capital

Advantage Capital provides financing to established and emerging
companies located in communities underserved by conventional sources of
capital. Since 1992, the firm has invested more than $2.6 billion in
companies from a diverse array of industry sectors, and has helped
support more than 48,000 jobs. Learn more at,
or via Twitter or LinkedIn.

About RXQ Compounding, LLC

RXQ Compounding is an FDA Approved 503B Outsourcing Facility in Athens,
Ohio. The company manufactures sterile and non-sterile medications, and
formularies including products on the FDA shortlist. It is currently
licensed to ship to 38 states and Washington, D.C., with licenses for
other states on the horizon. Learn more at

Advantage Capital is an investment adviser registered under the
Investment Advisers Act of 1940. Registration does not imply a certain
level of skill or training. This release is not intended to be an
advertisement concerning investment advisory services or an offer to
sell, or a solicitation of an offer to purchase an interest in any
security. Advantage Capital is an equal opportunity provider.

The investments and portfolio companies referenced in this release
represent only a sample of companies that have received investment
capital from Advantage Capital-related entities.
For a complete
list of such companies, please see our website at
should not be assumed that recommendations made in the future will be
profitable or will equal the performance of the securities highlighted
herein or contained in any other information provided by Advantage
Past performance is no guarantee of future results.

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