Trading in WSF stock suspended because of late financial reports

Advertiser Staff and News Services

The Securities and Exchange Commission halted trading in the stock of WSF Corp., a Honolulu company developing real estate in Belize, because the company has not filed an annual report or quarterly reports since late 2000.

WSF's chairman and chief executive, Gerhart Walch, said the company recently hired the Honolulu accounting firm of Oshima, Chan, Wikoff & Combs after dropping his Belize-based accountant.

Walch said the new accountants are preparing financial statements and then WSF will select an auditor to bring it in compliance with SEC rules.

"We are in the process of doing that (issuing financial statements). We just have to go through the steps," said Walch. "Unfortunately the SEC doesn't have anything better to do."

Shares of the company, which has three employees and an office at the Amfac Center, had sold for less than 5 cents during the past six months but shot up to 10 cents in the past two weeks.

Walch said he suspects the jump in share price drew the attention of the SEC. He said the price rose because of a letter to shareholders he posted on his company's Web site (wsf.com) that reported progress in timber interests in Belize.

The letter said WSF signed an agreement with F&W Forestry Services Inc., a U.S. forest management firm, to manage the timber on WSF's Belize property.

"F&W will soon start to inventory the timber and set up a certified plan for sustainable forestry," Walch said in the letter.

The SEC trading suspension will last until Jan. 17.

The SEC statement said WSF hasn't filed an annual report for the year ended Dec. 31, 2000, and has not filed any quarterly reports since. The company's last quarterly filing was posted on the SEC's Edgar Online database Nov. 22, and covered the period that ended Sept. 30, 2000.

Walch said the attention focused on his company as a result of the SEC action may not be all bad. "We are such an undervalued company, I hope people look at us."