HCSB Financial Corporation Private Trading System
We are pleased to announce the launch of the HCSB Financial Corporation Private Trading System, a mechanism created to assist buyers and sellers facilitate trades in our common stock. The following information describes the operation, participation, terms and benefits of the Private Trading System. Should you have any questions regarding the Private Trading System, please contact Denise Floyd (the "PTS Officer") at (843) 716-6103 or at email@example.com.
What information should be included in an offer to purchase or sale common stock of the Company?
- name, address, telephone number, and any other contact mechanisms where such participant may by reached by the Company;
- whether the participant elects to make his contact information public or private to interested parties on the Private Trading System;
the number of shares of stock offered for sale or desired to be purchased;
the desired ask or bid price per share of common stock;
the desired termination date of the offer (if any); and
whether the transfer request is a new request or an amendment to an existing transfer request.
How are participants contacted?
(1) Both parties must complete a standard contract and the buyer must deliver a certified check for the purchase price of the shares.
The parties should evidence the transaction by properly executing the Stock Sale and Purchase Agreement, which can be obtained by contacting the PTS Officer at (864) 716-6103 or at firstname.lastname@example.org.
The Stock Sale and Purchase Agreement should include the number of shares sold, the total purchase price, and the purchase price per share. The seller should execute and mail the Stock Sale and Purchase Agreement to the buyer, who, upon receipt, should execute and mail to the seller this Agreement along with a certified check for the total amount of the purchase price of the shares.
Note that, in lieu of mailing the executed Stock Sale and Purchase Agreement and certified check, the parties may meet at a mutually agreeable location (including any branch of the Bank) to execute the Stock Sale and Purchase Agreement and deliver the certified check for the total amount of the purchase price of the shares.
(2) The seller must sign the stock certificate guaranteed by a medallion signature stamp.
The seller must have his signature "guaranteed" before the transfer agent will accept the transaction. Most transfer agents insist on signature guarantees because they limit their liability and losses if a signature turns out to be forged. To accomplish this, the seller may bring the stock certificate to the Bank where it will be simultaneously signed by the seller and guaranteed by the Bank through the medallion signature stamp.
(3) The seller must fill out the appropriate transfer information on the back of the stock certificate.
The seller must list his social security number or tax identification number, the number of certificated shares to be transferred, and the name, address, date and telephone number of the buyer (or his designee) on the back of the stock certificate. This may be accomplished by prescribing the information directly on the back of the share certificate.
(4) The seller must mail the stock certificate to the transfer agent.
The seller must mail the stock certificate, along with the required transfer information, to the Company's transfer agent at the following address:
HCSB Fianncial Corporation
c/o Denise Floyd
Upon receipt of the stock certificate, the transfer agent will cancel the stock certificate and issue and mail a new certificate to the buyer (or his designee) listed in the transfer information.
Note that, if desirable by the seller, the seller may prefer to delay mailing the stock certificate to the Company's transfer agent until the seller has received the certified check from the buyer.
(5) The seller must notify the PTS Officer of the final terms of the transaction.
The seller must notify the PTS Officer of the final terms of the transaction, including the date, price, and number of shares sold. This can be accomplished by delivering to the PTS Officer a copy of the executed Stock Sale and Purchase Agreement.
What else should participants know about the Private Trading System?
Neither the Company nor the Bank is registered as a national securities exchange, securities information processor, broker, dealer or investment advisor. Absent an available exemption, the registration requirements of the federal securities laws apply to all offers and sales through the Private Trading System. All applicable federal and state securities laws (including the anti-fraud and anti-manipulation provisions) apply to any offer made or transaction consummated using the Private Trading System.
The information set forth on the Private Trading System does not consist of firm quotes, but rather is merely a list of names, addresses and telephone numbers of interested buyers and sellers, the number of shares of common stock offered for sale or desired to be purchased, and the price at which the proposed transaction would occur. We do not assure that any particular transaction will occur as to any particular number of shares or at any particular price. All transactions between participants must be executed by the participants independent of the Company, the Bank, and any of our employees. Trades in the Company's stock over a three-year period which are listed on the Private Trading System are based solely on data that has been reported to the Company and may not include all trades over such three-year period. The Company makes no representation regarding the accuracy of the data or the value of the shares for the trades listed over the three-year period.