Blackhawk Capital Group BDC, Inc. Announces Additional Placement Agent Agreement With EquitySmith, Inc.

Feb 19, 2009, 12:07 ET from Blackhawk Capital Group BDC, Inc.

NEW YORK, Feb. 19 /PRNewswire-FirstCall/ -- Blackhawk Capital Group BDC, Inc. (OTC Bulletin Board: BHCG), a business development company registered under the Investment Company Act of 1940 ("Blackhawk"), reported that it had entered into an additional placement agent agreement dated February 13, 2009 ("Second Placement Agent Agreement") with EquitySmith, Inc. ("ESI"). Craig A. Zabala, Chairman and President of Blackhawk, commented: "Blackhawk entered into the Second Placement Agent Agreement with ESI with the objective of ESI placing additional shares of Common Stock of Blackhawk with qualified institutional buyers ("QIBs") (as defined under Rule 144A of the Securities Act of 1933, as amended ("Securities Act")) and accredited investors (as defined in Regulation D in the Securities Act) up to a maximum offering amount of $25,000,000. The term of the Second Placement Agent Agreement runs to March 17, 2009. ESI, John W. Loofbourrow Associates, Inc. ("JWL") and Blackhawk had signed a placement agent agreement on January 16, 2009 ("Placement Agent Agreement") pursuant to which ESI and JWL agreed to place with QIBs and accredited investors shares of Common Stock with a maximum amount of $10,000,000. On February 17, 2009, ESI, JWL and Blackhawk agreed to extend the term of the Placement Agent Agreement until March 17, 2009."

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any security. The securities are being offered pursuant to a private placement memorandum. Blackhawk will file a Form D with the Securities and Exchange Commission pursuant to Rule 506 under Regulation D under the Securities Act when sales of shares are closed. The securities have not been registered under the Securities Act, any other Federal securities laws or any state securities laws. Neither the Securities and Exchange Commission nor any state securities commission has in any way passed upon the merits of, or given approval to, guaranteed or recommended the securities offered by Blackhawk or the terms of the offering or has determined that the securities are exempt from registration, or made any finding that the statements in the private placement memorandum are accurate or complete.

Blackhawk is a business development company registered under the Investment Company Act of 1940 and was formed in April 2004.

Safe Harbor Statement

Information contained in this release, other than historical information, should be considered forward-looking, and may be subject to inherent uncertainties in predicting future results and conditions. These statements reflect Blackhawk's current beliefs and are subject to a number of risk-factors, including: general economic and investment conditions which affect Blackhawk and its operations (including its portfolio company); need for equity capital and no assurance it can be obtained; valuation and illiquid nature of any portfolio investments; no assurance that any equity subscription agreements will close; high degree of risk from investing in private companies; the regulated environment in which we operate; and the competitive market for investment capital and opportunities. Please see Blackhawk's Form 10-K for the fiscal year ended December 31, 2007, and its Form 10-Q for the fiscal quarter ended September 30, 2008 previously filed with the Securities and Exchange Commission, for a detailed discussion of the risks and uncertainties associates with Blackhawk's business. Except as otherwise required by Federal securities laws, Blackhawk undertakes no obligation to update or revise forward-looking statements for new events and uncertainties.

    Blackhawk Capital Group BDC, Inc.
    Dr. Craig A. Zabala
    President and Chief Executive Officer
    (212) 566-8300

SOURCE Blackhawk Capital Group BDC, Inc.