Protective Capital Structures Corp. (fka PCSO)

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In a recent telephone conversation with Heritage Capital Credit Corp. CEO, Carol Johnson, we discussed a range of topics being asked by the company’s shareholders. The conversation was conducted ahead of a soon to be announced shareholder conference call date where the CEO will speak to shareholders directly. I have written a snap-shot look into some of the issues concerning shareholders which can serve as a guideline for the forthcoming conference call. Once the details of the call are finalized, the date, time and instructions to participate in the CEO’s address to shareholders will be published on Heritage’s company website http://www.heritagecapitalcreditcorp.com

Carol addressed the company’s ongoing audit by saying the delay in completing the audit has been largely due to its extensive scope. A new company (Gruber & Company) was hired to complete the audit and is awaiting documents from the previous auditor, Webb & Company, to complete their portion of the audit.

In the conversation, the CEO acknowledged that the company funded three loans in February and March using its Series A Preferred Shares. It’s now up to the borrowers to complete their acquisitions using the preferred shares and/or a third-party lender. Heritage is currently servicing the loans and will continue to assist the borrowers until they take title to their projects or complete construction. Although the current crisis plaguing the financial sector has made it difficult to finalize deals, she stated the GSR and 1300 N. Market Street projects, among others, are still on the table.

When asked about the company enacting a stock split, the CEO maintains that a split would be better enacted when the company is positioned to list on a higher exchange. It would be at this time that the fundamentals and an appreciation in PPS would support a stock split.