NexPoint Sends Letter to United Development Funding IV (UDF IV) Shareholders in Advance of Court-Ordered Annual Meeting
Large Shareholder to Nominate Four Independent Trustees to Restore Accountability and Transparency Following Criminal Convictions of Members of Former Management Team
The letter, included below, notifies shareholders of this recent development and of NexPoint's intent to nominate four highly qualified, independent trustees who will act in the interest of shareholders to restore accountability 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.
Important Update for Shareholders of
Opportunity to Restore Accountability and Transparency at Upcoming Annual Meeting
Dear Fellow Shareholders:
The corporate governance failures at
As major shareholders ourselves,
-
For the first
time in over eight years, you have the power to enact posi
tive change at UDF IV. A recent order from the
Circuit Court for Baltimore City , Maryland requires the Company to hold its next Annual Meeting of Shareholders on or beforeDecember 31, 2024 , during which four of the five trustees must stand for election. While the meeting date has not been announced, we want you to be prepared to exercise your right to vote. We will notify you once the date of the meeting is set. To receive updates via email, complete the contact form at udfaccountability.com or email udfinvestors@nexpoint.com. -
NexPoint intends to nominate four highly qualified and independent trustees to replace incumbent trustees
Lawrence S. Jones ,Philip K. Marshall ,J. Heath Malone , andSteven J. Finkle , who we believe have repeatedly violated their fiduciary duties. The incumbent trustees' actions have continually advanced their own interests and those of UDF IV management at the expense of shareholders. -
The incumbent trustees must be replaced. They created an insular governance structure and served as an impediment to liquidity for long-suffering shareholders. In response to basic shareholder requests for accountability, the incumbents changed the Company bylaws, entrenching themselves and disenfranchising shareholders by impeding your voting rights. In fact, three of UDF IV's independent trustees have not stood for election since 2015; one independent trustee has neverbeen elected by shareholders. The incumbents' failure to protect investors' interests has resulted in, among other things, a de-registered, illiquid stock, and their entrenchment tactics have—until now—limited all recourse available to shareholders to enforce basic rights.
-
The Board's egregious actions con
tinued even a
fter
the Company's execu
tives were convicted and sent to prison for fraud. Under the Board's leadership, the Company's advisor and management carried out a massive multi-year deception and fraud through the UDF IV "investment" program. Worse, once this deception was uncovered, the Board sat idle, allowing the advisor and much of the management team to remain in place, protecting their interests at the expense of shareholders. Of note, the Board also appears to have supported former UDF IV management in improperly using shareholder money to pay legal fees to defend the criminal charges that ultimately sent former management to prison.
- NexPoint's ac tions have already posi tively impacted shareholders and resulted in the upcoming, Court-ordered 2024 Annual Mee ting. We now need your support to replace the incumbent trustees and put UDF IV on a path to recovering value. Our nominees have decades of relevant professional experience and will seek to restore proper governance and establish a path to liquidity. It is time for UDF IV to have a Board that serves the interests of all shareholders—not just entrenched management. The upcoming Annual Meeting is shareholders' opportunity to reclaim your rightful ownership of the Company following years of corrupt governance and stagnant illiquidity. We hope you will support us in this endeavor.
Sincerely,
About NexPoint
IMPORTANT INFORMATION
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
CONTACT INFORMATION
For Information/Updates on UDF IV
Website: www.udfaccountability.com
Email: udfinvestors@nexpoint.com
Media Contacts
NexPoint Investor Relations
View original content:https://www.prnewswire.com/news-releases/nexpoint-sends-letter-to-united-development-funding-iv-udf-iv-shareholders-in-advance-of-court-ordered-annual-meeting-302171688.html
SOURCE