NexPoint Says UDF IV's Refusal to Provide Shareholder Information and Lack of Transparency Is Impeding Fair and Equitable Election as Required by Maryland Law
Requests Stay to Enable Communication with Shareholders and Remedy Information Imbalance
DALLAS, Oct. 25, 2024 /PRNewswire/ -- NexPoint Real Estate Opportunities, LLC (together with its affiliates "NexPoint") today announced that it has filed a motion in the Circuit Court for Baltimore City (the "Court") requesting emergency relief to compel United Development Funding IV ("UDF IV" or the "Company") to immediately obtain a non-objecting beneficial owner ("NOBO") list and produce it and all other relevant shareholder lists and related information. The motion also requests UDF IV's Annual Meeting be held no sooner than December 16, 2024, not to extend beyond the previously Court-ordered deadline of December 31, 2024, to allow NexPoint to communicate with its fellow shareholders upon receipt of all requested information.
NexPoint believes UDF IV must provide critical shareholder information to enable shareholders to make informed decisions in a fair and equitable election of Trustees as required by Maryland law. NexPoint believes UDF IV already has a vast amount of shareholder information they have collected throughout the years, including information regarding registered investment advisors, that should also be shared. UDF IV has refused NexPoint's previous requests for more extensive shareholder information beyond the names of record shareholders. NexPoint therefore currently only has contact information for fellow shareholders representing approximately 14% of outstanding shares across only 13% of accounts. NexPoint believes UDF IV's current Board of Trustees should not be rewarded for their alarming lack of financial transparency, including limited shareholder communications (before this contested election) regarding Company actions, and failure to hold annual shareholder meetings, having held only one in the last nine years at NexPoint's behest.
A copy of the motion can be found here.
The Company's delisting and deregistration and sparse shareholder communications has made reaching shareholders exceedingly difficult. NexPoint believes the stark imbalance of shareholder information unjustly handicaps NexPoint's solicitation and threatens to leave most UDF IV shareholders severely uninformed during what is a crucial election of Trustees. Some shareholders who NexPoint has been able to contact were not even aware that members of the former management team are currently serving prison terms for financial fraud at the Company and the Board's continued financial support of these felons.
It is important to note that while UDF IV has not announced its Annual Meeting date, shareholders can vote TODAY using NexPoint's GREENproxy materials to enact long overdue change and elect Trustees who will work for all shareholders to maximize value at UDF IV.
NexPoint encourages shareholders to visit udfaccountability.com and complete the contact form to receive ongoing updates about the Company and the upcoming Annual Meeting.
Shareholders can also contact NexPoint via email at udfinvestors@nexpoint.com.
About NexPoint
NexPoint Real Estate Opportunities, LLC is a wholly owned subsidiary of NexPoint Diversified Real Estate Trust, Inc. (NYSE: NXDT), an affiliate of NexPoint Advisors, L.P.
NexPoint Advisors, L.P. is an SEC-registered adviser on the NexPoint alternative investment platform. It serves as the adviser to a suite of funds and investment vehicles, including a closed-end fund, interval fund, business development company, and various real estate vehicles. For more information visit www.nexpoint.com.
IMPORTANT INFORMATION
NexPoint Real Estate Opportunities, LLC ("NexPoint") intends to deliver a proxy statement with respect to its solicitation of proxies for nominees to be elected to the United Development Funding IV ("UDF IV") Board of Trustees at the Annual Meeting of Shareholders of UDF IV. The date for the Annual Meeting has not yet been set and NexPoint is not soliciting proxies at this time. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE NEXPOINT PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) WHEN AVAILABLE IN ITS ENTIRETY BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT ANY SOLICITATION. Copies of the documents will be made available free of charge from NexPoint by accessing the website www.udfaccountability.com.
NexPoint, its affiliates, their directors and executive officers and other members of management and employees may be participants (collectively "Participants") in the solicitation of proxies by NexPoint. Information about NexPoint's nominees to the UDF IV Board of Trustees and information regarding the direct or indirect interests in UDF IV, by security holdings or otherwise, of NexPoint, the other Participants and NexPoint's nominees will be available in the proxy statement. NexPoint's disclosure of any security holdings will be based on information made available to NexPoint by such Participants and nominees. UDF IV is no longer subject to the reporting requirements of the Securities Exchange Act of 1934, as amended. Consequently, NexPoint's knowledge of significant security holders of UDF IV and as to UDF IV itself is limited.
CONTACT INFORMATION
UDF IV Investor Contacts
Chuck Garske / Jeremy Provost / Theo Caminiti (Okapi Partners):
Email: info@okapipartners.com
Phone: (212) 297-0720
For Additional Information/Updates on UDF IV
Website: www.udfaccountability.com
Email: udfinvestors@nexpoint.com
Media Contacts
Lucy Bannon (NexPoint): lbannon@nexpoint.com
Paul Caminiti/Pamela Greene (Reevemark): nexpointteam@reevemark.com
NexPoint Investor Relations
Kristen Thomas: ir@nexpoint.com
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SOURCE NexPoint Advisors, L.P.
