Paulson Capital (PLCC)

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JHS Capital Advisors Buys Paulson Investment Co.’s Retail Business
Paulson Investment Co. Has Approximately 75 Advisors Who Manage more than $1 Billion of Client Assets

TAMPA, Fla., Feb. 29, 2012 /PRNewswire/ – JHS Capital Advisors, a registered securities broker dealer and Registered Investment Advisor, is today announcing that it has reached an agreement in principle to purchase the retail operations of Paulson Investment Company, Inc. (Paulson), a wholly owned subsidiary of Portland, Ore.-based Paulson Capital Corp. (NASDAQ:PLCC). Terms were not disclosed. The transaction is subject to approval by FINRA.

Paulson Investment Co. has approximately 75 financial advisors who manage $1.1 billion of client assets, adding to JHS’s national network of nearly 100 advisors who currently manage in excess of $2 billion of client assets.

“With similar cultures and values, Paulson’s retail division is a natural fit for JHS and will assist both of us in advancing our business plans,” said Scott J. Bendert, JHS president and CEO. ”At JHS, we’ve experienced exceptional growth during the past year and this transaction further enhances our business development strategy. We’ve continued to invest in our infrastructure and operations at the same time that we’ve been adding advisor teams to our firm, so we’re looking forward to working with the Paulson advisors as the newest members of the JHS network.”

“JHS shares Paulson’s commitment to operating with the highest level of integrity and always putting clients first,” said Trent D. Davis, president and CEO of Paulson. “JHS is an excellent opportunity for our registered representatives because of its similar infrastructure that supports both employee and independent contractor representatives. In addition, our brokers and clients will benefit from JHS’s size, scope, extensive product platform, financial resources and industry-leading technologies.”

Under the terms of the agreement, the former Paulson advisors will become registered representatives of JHS and, through JHS, continue to use RBC Correspondent Services, a division of RBC Capital Markets, LLC, for custody of client assets and securities, trade execution and portfolio reporting, thereby minimizing the impact on clients.

Paulson will continue to operate independently as a broker/dealer focused on its core competencies in boutique investment banking activities. It will remain a wholly owned subsidiary of Paulson Capital Corp., which will continue to trade under the ticker symbol of “PLCC” on the Nasdaq Exchange.

About JHS Capital Advisors
JHS Capital Advisors is an asset management firm providing personalized client services for investors nationwide. Founded on a simple code of ethics based on integrity, transparency and full disclosure, JHS’s mission is to always put its clients’ needs and interests first, and to build a reputation for fostering multi-generational relationships. JHS has an open platform that offers a full suite of financial products and services, enabling greater choice and autonomy for its advisors. JHS clears its brokerage transactions through RBC Correspondent Services, a division of RBC Capital Markets LLC, member NYSE/FINRA/SIPC. Founded in 2009 by John H. Sykes, JHS Capital Advisors is headquartered in Tampa, Florida, and is a subsidiary of JHS Capital Holdings. For more information about JHS Capital Advisors: http://jhscapital.com

About Paulson Capital Corp
Paulson Capital Corporation is the parent company of Paulson Investment Company Inc. Headquartered in Portland, Ore., Paulson Investment Company Inc. is the Northwest’s largest independent brokerage firm and a national leader in public offerings of small and emerging growth companies with capital needs of $5 million to $45 million. Founded by Chester “Chet” Paulson in 1970, it has managed or underwritten 170 securities offerings and has generated more than $1.2 billion for client companies. For more information about Paulson Investment Company Inc.: http://www.paulsoninvestment.com/