OTCBB ALERTS

[likwit]

HCPC

A. Background

The company has developed a new commercial loan product called a BCLOC loan. This has been developed over a 4 year period, mainly funded by Directors/ Shareholders finance. They are now readying themselves to launch the product commercially.....the first loans are anticipated to close before the end of the year, bringing earnings for first time.

To fund the loans HCPC intend to sell Promissory Notes to Institutional Investors. The Institutional investor is guaranteed repayment of their original capital + interest. The notes have already been given a AAA credit rating by an independent credit agency. At present they have an institutional investor lined up with 'substantially in excess' of $300 million of funding available.

The loan also incorporates a special credit enhancement feature, which builds capital for the borrower during the life of the loan. This is very different from conventional CMBS loans and again helps to protect the borrower and their payments by reducing risk of default as well protecting the payments due to the investor. If their is a cashflow problem with the borrower, the capital built with this feature can be used for repayment purposes. With current concerns within the credit market, many investors are looking for a more secure place for their money. HCPC has such a product and should gain much more attention going forward. They seem to have the right product at the right time. More on this at their affiliates website:

http://www.firstifg.com/id6.html

B. Short term Plan

The company currently has originated c. $740 million in commercial loans. They hope by year end to:

1. Close $740 million in loans: Which would earn them $35 million + $234k month revenue for the 35 year period of servicing the loans.
2. Uplist to OTCQX.
3. Share buyback to have commenced.
4. Also new Directors to have been appointed (not mentioned in the letter but expected at shareholders meeting of October 18th)

C. Medium/ Longer Term Plan

Their plan then is set out in the recent shareholders letter of 27th August. This is to form a (Community) Bank

Q: What are the plans for the Company after the BCLOC LOANS are funded?

A: The Company plans to use a portion of its earnings to redeem shares and the balance to form a bank and continue to originate BCLOC loans through that bank. It should be noted that Heritage was founded in 1994 for the purpose of forming a bank.

If they follow through with this plan the earnings (net EPS) will be tremendous. With the loan model validated they should then have no problem marketing their product to the broader market. They have Gregory FCA lined up to assist with PR work when funding is secured. These guys handle the PR for many quality companies dealing with their media and marketing needs.

http://www.gregoryfca.com/