DALLAS, May 14, 2021 (GLOBE NEWSWIRE) – NexPoint Strategic Opportunities Fund (: NHF) (NHF, Financial) today announced the extension of the offer period for its previously announced offer to purchase all of the Shares of Economic Interest (the Shares) in United Development Funding IV (UDFI or the Company) at a price of $ 1.10 per share under the terms and conditions subject to the terms and conditions set out for the offer in the offer to purchase and the associated assignment form (which together constitute the offer and the offer documents). Offer will now expire at midnight Eastern Time on June 11, 2021, unless the offer is extended or terminated earlier. The offer documents are available at www.UDFITenderOffer.com or from the offer information agent, as explained below.
As already announced on December 14, 2020, the offer depends, among other things, on the fulfillment or waiver of the following conditions: (i) No lawsuit or proceedings before a court or a court may have been threatened, initiated or pending any governmental or administrative agency (a) contesting or relating in any way to the acquisition of Shares under the Offer or (b) in NHF's sole discretion otherwise materially affects the Company; (ii) NHF must have received all necessary regulatory approvals for the offering, if any; (iii) NHF must have had the opportunity to conduct sufficient due diligence to determine whether the offered price per share is appropriate given the current financial position and earnings of UDFI. (iv) The UDFI Board of Trustees has waived in writing the restrictions on ownership set out in Article VII of UDFI's Declaration of Confidence, as these restrictions would otherwise apply to the Offer. and (v) NHF must have received satisfactory evidence that UDFI continued to qualify as a Real Estate Investment Trust (REIT) under federal tax laws, thereby avoiding any federal corporate income or excise tax.
On January 8, 2021, UDFI announced that it had reduced the percentage of outstanding shares a shareholder might own from 9.8% to 5.0%. The company has taken such action to thwart the offer. It also announced that it will amend the company's articles of association to allow certain legal action on behalf of or against UDFI to be brought only in certain courts in Maryland. NHF and its advisors will review these measures and their legality in accordance with applicable law.
Shareholders should read the offer to buy and the related materials carefully as they contain important information. Shareholders can obtain a free copy of the purchase offer and assignment form from D.F. King & Co., Inc., the offering information agent (the information agent), by phone at (800) 331-7543. Offer expires at the end of the day on June 11, 2021 at 12:00 p.m. Eastern Time, unless the offer is extended or terminated earlier.
Via the NexPoint Strategic Opportunities Fund (NHF, Financially)
The NexPoint Strategic Opportunities Fund (: NHF) is a closed-end fund managed by NexPoint Advisors, L.P. and is currently being converted to a diversified REIT. On August 28, 2020, shareholders approved the exchange proposal and changed the company's basic investment policy and restrictions to allow the company to continue its new business. The company has since realigned its portfolio so that it is no longer an investment company under the Investment Company Act of 1940 (the 1940 Act). On March 31, 2021, the Company filed with the Securities and Exchange Commission (SEC) for an order under the 1940 Act declaring that the Company is no longer an investment company (Deregistration Ordinance). During the SEC review process, the company will continue to be structured as a closed-end mutual fund. The company has also completed the repositioning of its investment portfolio sufficient to achieve REIT tax status and will be operating during the 2021 tax year in order for it to be taxable as a REIT.
More information is available at www.nexpoint.com/nexpoint-strategic-opportunities-fund
About NexPoint Advisors, L.P.
NexPoint Advisors, L.P. (the Investment Advisor) is an SEC registered advisor on NexPoint's alternative investment platform. It acts as an advisor to a range of funds and investment vehicles including a closed-end fund, an interval fund, a business development company and various real estate vehicles. More information is available at www.nexpoint.com
Risks and Disclosures
This document is for informational purposes only and is not an offer to buy or an offer to sell any common stock of UDFI or any other security. The offer to purchase common shares of UDFI is only made in accordance with the purchase offer, the assignment form and the associated documents. THE OFFERING MATERIALS (INCLUDING THE OFFER TO PURCHASE, TRANSFER FORM AND CERTAIN OTHER OFFERING COMPANY DOCUMENTS) CONTAIN IMPORTANT INFORMATION. UDFI SHAREHOLDERS ARE OBLIGED TO READ THESE DOCUMENTS CAREFULLY WHEN THEY BECOME AVAILABLE, BECAUSE THEY CONTAIN IMPORTANT INFORMATION THAT THESE SHAREHOLDERS MUST CONSIDER BEFORE MAKING ANY DECISION ON ANY OFFER. Investors and security holders can obtain a free copy of these statements (if available) by directing such inquiries to the Information Agent and by calling toll-free at (800) 331-7543.
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Media contact
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