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Board chairman steps down as First Capital Investment shifts focus to healthcare

First Capital Investment Corp. is changing its strategic focus to investments in healthcare companies, a move that former board Chairman Bob Froehlich criticized.

Froehlich stepped down from First Capital Investment's board as the company tapped the leadership of StHealth Capital Partners LLC to guide the strategic shift. The change in the company's strategic direction comes as StHealth Capital Partners is acquiring First Capital Master Advisor LLC, the entity that owns FCIC Advisors LLC, the investment adviser to First Capital Investment.

Froehlich expressed disagreement with the strategic shift, saying that narrowing the focus to be a healthcare business development company limits upside and comes with a "tremendous" downside risk if the sector performs poorly. He also criticized what he believes is a lack of transparency in the company, citing the management's lack of communication to the board regarding investments.

First Capital Investment appointed Derek Taller as CEO, Reid Maclellan as COO and Paul Saint-Pierre as CFO, treasurer and secretary. Taller serves as CEO and Saint-Pierre is CFO at StHealth Capital, while Maclellan held the COO role at the company.

Saint-Pierre was also appointed interim interested director and chairman of First Capital Investment's board until a new chairman is named at the 2018 annual meeting of shareholders.

Concurrent with Saint-Pierre's appointment, Froehlich and board member Suneet Singal resigned from First Capital Investment's board. Additionally, the size of the board was reduced to three.

Singal also stepped down as acting CEO, acting treasurer, acting CFO and acting secretary of First Capital Investment. His departure was not related to any disagreement with the company's operations, policies or practices. Additionally, Brian Wall resigned as financial consultant for First Capital Investment.