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 GREEN proxy 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.
