13G Filing: EJF Capital and Hcsb Financial Corp (HCFB)

(1)

In addition to being the record owner of 35,968,163 shares of Common Stock, EJF Sidecar Fund, Series LLC – Series E is also the record owner of 80,318.37 shares of the Issuer’s Series A Preferred Stock.  Subject to certain conditions, each share of Series A Preferred Stock may be converted into 100 shares of Common Stock at any time, provided that upon such conversion, the holder and its affiliates will not own more than 9.9% of the Common Stock.  Because the 35,968,163 shares of Common Stock that are beneficially owned by EJF Sidecar Fund, Series LLC – Series E represent 9.9% of the outstanding shares of Common Stock, it may not currently convert any shares of Series A Preferred Stock into shares of Common Stock.