X0306 4 2014-10-01 0 0001006837 HC2 Holdings, Inc. HCHC 0001512716 DG Capital Management, LLC 460 PARK AVENUE 13TH FLOOR NEW YORK NY 10022 0 0 1 0 0001609920 Gertzulin Dov 460 PARK AVENUE 13TH FLOOR NEW YORK NY 10022 0 0 1 0 Common Stock 1192335 I See footnote Series A Convertible Participating Preferred Stock Common Stock 5000 I See footnote Series A-1 Convertible Participating Preferred Stock 2014-09-22 4 P 0 1000 1000 A Common Stock 1000 I See footnote Shares reported herein are held for the account of private investment funds for which DG Capital Management, LLC serves as investment adviser. Mr. Gertzulin serves as the Managing Member of DG Capital Management, LLC. Each of the Reporting Persons disclaims beneficial ownership of the shares reported herein except to the extent of its or his pecuniary interest therein, and the filing of this Form 4 shall not be construed as an admission that either of the Reporting Persons is the beneficial owner of any such shares for purposes of Section 16(a) of the Securities Exchange Act of 1934 or for any other purpose. The Series A Convertible Participating Preferred Stock was convertible as of the date of issuance and has no expiration date. As of the date of this Form 4, each share of the Issuer's Series A Convertible Participating Preferred Stock is convertible into shares of the Issuer's common stock at rate of $1,000 divided by $4.00, subject to adjustment upon the occurrence of certain events. The Series A-1 Convertible Participating Preferred Stock was convertible as of the date of issuance and has no expiration date. As of the date of this Form 4, each share of the Issuer's Series A-1 Convertible Participating Preferred Stock is convertible into shares of the Issuer's common stock at rate of $1,000 divided by $4.25, subject to adjustment upon the occurrence of certain events. /s/ DG CAPITAL MANAGEMENT, LLC - Dov Gertzulin, Managing Member 2014-10-01 /s/ Dov Gertzulin 2014-10-01