555 Republic Drive Suite 490
Plano, TX 75074
State Of Incorporation: GA
Officers and Directors:
Ronald F. Akin, CEO/Director
F. Terry Shumate, CFO and Secretary/Director
Latest Annual Registration Filed: 2009 (3/03/2009)
National Registered Agents, Inc
3675 Crestwood Parkway Suite 350
Duluth, GA 30096
Source: Georgia Secretary of State
Texas Fictitious Name: Texas Highland RS Corp. (Amended: 9/14/09)
National Registered Agents, Inc (Changed: 9/27/07)
16055 Space Center Suite 235
Houston, TX 77062
Source: Texas Secretary of State
American Stock Transfer & Trust Company,
59 Maiden Lane
New York, NY 10038
A&B Capital Corporation is the controlling shareholder. Southmark and A&B Capital have common management. A&B Capital owned a total of 965,541 shares of SMRKP (which constituted approximately 34.1% of the 2,831,997 shares) and a total of 7,346,114 shares of SMRK (which constituted approximately 20% of the 36,761,096 shares outstanding) at 5/20/00.
A&B Capital increased its stake to 48 percent, according to the Texas Franchise Tax Public Information Report filed 10/27/03.
As of 4/30/04, SMRK had issued and outstanding a total of 56,572,962 shares of Common Stock. Based upon that number, the 2,831,997 shares of SMRKP (Series A Preferred Stock) were automatically converted into an aggregate of 2,002,677 shares (or 0.707167 shares for each share of SMRKP). Simultaneously, the 757,341 Series C Convertible Preferred Stock became automatically convertible into 5 percent of the shares of common shares on a fully-diluted basis after giving effect to the automatic conversion of SMRKP. Based upon the automatic conversion of the Series A Preferred Stock at April 30, 2004, the 757,341 shares of Series C Convertible Preferred Stock were converted into 2,928,781 shares of SMRK based upon a conversion ratio of 3.867192 shares of SMRK for each share of Series C Convertible Preferred Stock then outstanding, which further increased the number of issued and outstanding shares to a total of 61,504,420 shares.
A&B Capital would have received approximately 682,799 shares of SMRK upon conversion of 965,541 shares of SMRKP.
The 10/24/06 filing shows ownership of 50.04 percent. This would approximate 30,776,812 shares. After subtracting the 682,799 shares received from the conversion of SMRKP into SMRK in 2004, A&B Capital would have needed to acquire 22,747,899 shares between 5/20/00 and 10/27/03. However, only 7,413,400 shares traded between these two dates.
[Disclosure: The moderator (effective June 15, 2009) purchased debt in Southmark Corp. during Stage III of the Chapter 11 reorganization process and received SMRK shares as settlement of claims in 1990. Additional purchases of SMRK and primarily SMRKP were made later on. The initial shares of SMRKP were purchased at $.25. SMRKP holders received $16 in principal and unknown amount of dividends. All dividends were reinvested in additional shares SMRKP. The original 80,932 shares are in an IRA and have no basis since dividends greatly exceeded original cost. SMRK is considered a "permanent holding". The goal is accumulate shares by buying additional shares as they become available, subject to funding.]