Pillarstone Capital REIT (OTCMKTS:PRLE) Files An 8-K Changes in Registrant’s Certifying Accountant

Pillarstone Capital REIT (OTCMKTS:PRLE) Files An 8-K Changes in Registrant’s Certifying Accountant

Story continues below

Item 4.01. Changes in Registrant’s Certifying Accountant.

On January 19, 2017, upon the recommendation of the Companys Audit
Committee, the Board of Trustee of Pillarstone Capital REIT (the
Company) dismissed Boulay PLLP (Boulay) as the Company independent
registered public accounting firm.
The reports of Boulay on the Companys consolidated financial
statements for the fiscal years ended December 31, 2014 and
December 31, 2015, did not contain an adverse opinion or a
disclaimer of opinion, and were not qualified or modified as to
uncertainty, audit scope or accounting principle except as follows:
The accompanying consolidated financial statements have been
prepared assuming that the Company will continue as a going
concern. As discussed in Note 2 to the consolidated financial
statements, the lack of revenue generating operations, the Companys
recurring net losses, negative cash flow from operations and
accumulated deficit raise substantial doubt about the Companys
ability to continue as a going concern. The consolidated statements
do not include any adjustments that might result from the outcome
of this uncertainty. Our opinion is not modified with respect to
that matter.
During the Companys fiscal years ended December 31, 2015 and 2016
and through January 19, 2017 (1) there were no disagreements with
Boulay on any matter of accounting principles or practices,
financial statement disclosure or auditing scope and procedure
which, if not resolved to the satisfaction of Boulay, would have
caused Boulay to make reference to the matter in its report and (2)
there were no reportable events as that term is defined in Item 304
of Regulation S-K promulgated under the Securities Exchange Act of
1934 (Item 304). The Company provided Boulay with a copy of the
disclosures made to this Item 4.01 prior to the filing of this
Current Report on Form 8-K. The Company has requested that Boulay
furnish to it a letter addressed to the Securities and Exchange
Commission stating whether it agrees with the above statements. A
copy of that letter, dated January 19, 2017, is filed as Exhibit
16.1 to this Form 8-K.
On January 19, 2017 (the Engagement Date), upon the recommendation
of the Companys Audit Committee, the Board of Trustees of the
Company engaged Pannell Kerr Forster of Texas, P. C. (PKF) as the
Companys independent registered public accounting firm, beginning
with the period ended December 31, 2016.
During the Companys two most recent fiscal years, the subsequent
interim periods thereto, and through the Engagement Date, neither
the Company nor anyone on its behalf consulted PKF regarding either
(1) the application of accounting principles to a specified
transaction, either completed or proposed, or the type of audit
opinion that might be rendered on the Company’s consolidated
financial statements; or (2) any matter regarding the Company that
was either the subject of a disagreement (as defined in Item
304(a)(1)(iv) of Regulation S-K and related instructions to Item
304 of Regulation S-K) or a reportable event (as defined in Item
304(a)(1)(v) of Regulation S-K).
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following exhibit is furnished herewith:
Exhibit No.
Description
16.1
Letter from Boulay PLLP to the Securities and Exchange
Commission dated January 19, 2017.


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.

Pillarstone Capital REIT (OTCMKTS:PRLE) Recent Trading Information

Pillarstone Capital REIT (OTCMKTS:PRLE) closed its last trading session 00.00 at 5.25 with 100 shares trading hands.

An ad to help with our costs