Pillarstone Capital REIT (OTCMKTS:PRLE) Files An 8-K Other Events

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Pillarstone Capital REIT (OTCMKTS:PRLE) Files An 8-K Other Events

Pillarstone Capital REIT (OTCMKTS:PRLE) Files An 8-K Other Events
Item 8.01.Other Events.

On August 15, 2018, Pillarstone Capital REIT (the “Company”) filed a Form 12b-25 with the Securities and Exchange Commission (the “SEC”), which stated that the Company was unable to complete and file its quarterly report on Form 10-Q for the quarterly period ended June 30, 2018 (the “Form 10-Q”) within the time period prescribed by the SEC rules. The Company stated in the form 12b-25 that, it has concluded disclosing its conclusion that it should restate its audited consolidated financial statements for the years ended December 31, 2016 and December 31, 2017 and unaudited consolidated financial statements for the quarters ended March 31, 2017, June 30, 2017, September 30, 2017 and March 31, 2018 (collectively, the “Prior Period Financial Statements”).

The Company has been working with great diligence to complete the restatements but will not be able to complete the restatements in time to file the Form 10-Q within the five-day extension period provided under Rule 12b-25 of the Securities Exchange Act of 1943, as amended, as additional time is required due to the number of financial statements that will be restated. The Company is working diligently on this matter and intends to file the Form 10-Q and the restated Prior Period Financial Statements as soon as practicable.

The Audit Committee of the Board and management have discussed the foregoing matters with Pannell Kerr Forster of Texas,

P.C. (“PKF”).

Forward-Looking Statements

This Current Report on Form 8-K contains historical information, as well as forward-looking statements within the meaning of the federal securities laws, including discussion and analysis of our financial condition; risks relating to the impact of the restatement on the Company’s financial statements; the impact of the restatement on the Company’s evaluation of the effectiveness of its internal controls over financial reporting and disclosure controls and procedures; the costs and expenses of the restatement; delays in the preparation of the restated financial statements and the Amended Filings; the risk that additional information will come to light during the course of the preparation of the restated financial statements that alters the scope or magnitude of the restatement; potential reviews, litigation or other proceedings by governmental authorities, shareholders or other parties; risks related to the impact on the restatement on the Company’s reputation, commercial contracts and ability to raise capital, and other factors as discussed in the Company’s filings with the Securities and Exchange Commission from time to time. Forward-looking statements that were true at the time made may ultimately prove to be incorrect or false. You are cautioned not to place undue reliance on forward-looking statements, which reflect management’s view only as of the date of this Current Report on Form 8-K. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results, except as required by law.


About Pillarstone Capital REIT (OTCMKTS:PRLE)

Pillarstone Capital REIT, formerly Paragon Real Estate Equity and Investment Trust, is a shell company. The Company is a real estate investment trust (REIT). The Company focuses on maintaining its trust existence and Securities and Exchange Commission (SEC) reporting history to enable it in the future to raise additional capital and make real estate investments. The Company focuses on making real estate investments, which include acquisition and development of retail, office, office warehouse, industrial, multifamily, hotel, and other commercial properties; acquisition of or merger with a REIT or a real estate operating company, and joint venture investments. The Company focuses on investing its excess funds in marketable securities of other real estate companies. The Company has not generated any revenues.