NexPoint Withdraws Offer to Purchase Shares of United Development Funding IV

Posted on 09/24/2022


NexPoint Advisors, L.P., investment adviser to the NexPoint Diversified Real Estate Trust (“NXDT”), has withdrawn its offer to purchase Shares of Beneficial Interest of United Development Funding IV.

The offer, which NexPoint announced on December 14, 2020, was intended to provide liquidity to shareholders who otherwise had few opportunities to sell Shares after Nasdaq delisted United Development Funding IV in May 2017 and the Securities and Exchange Commission revoked the registration of all classes of registered securities of UDFI in August 2020.

On January 8, 2021, shortly before the initial offer was set to expire, United Development Funding IV announced that it had reduced the percentage of outstanding Shares that a shareholder may own from 9.8% to 5.0%. NexPoint believes United Development Funding IV took such action to prevent NexPoint from acquiring any additional Shares. This unilateral action, which is consistent with the United Development Funding IV’s pattern of anti-shareholder conduct, ultimately made it impossible for NexPoint to close the offer without extensive legal intervention.

Despite the decision to withdraw the offer, NexPoint remains committed to maximizing the value of its investment in UDFI along with that of thousands of other shareholders. As such, NexPoint is continuing its efforts to hold accountable those individuals and entities that have perpetuated the massive multi-year deception and fraud at the expense of UDFI shareholders. NexPoint will continue to demand financial reporting and an annual shareholder meeting, neither of which has been provided to shareholders for over seven years.

NexPoint Diversified Real Estate Trust is an externally advised, publicly traded, diversified real estate investment trust (REIT) focused on the acquisition, development, and management of opportunistic and value-add investments throughout the United States across multiple sectors where NexPoint and its affiliates have operational expertise. NexPoint Advisors, L.P. is an SEC-registered adviser on the NexPoint alternative investment platform.

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