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MacKenzie Lowers Tender Offer for UDF IV Shares

Affiliates of MacKenzie Capital Management LP, a real estate investment firm, lowered its offering price to purchase up to approximately 1.6 million shares of United Development Funding IV from $1.50 per share to $1.00 per share.

MacKenzie said the amendment was due to the delisting of UDF stock from NASDAQ. UDF IV shares now trade on the grey market, closing at $1.60 on October 20, 2016.

United Development Funding IV has approximately 1,775 holders of record owning a total of 30.7 million shares. Trading of UDF IV’s shares was suspended in February 2016 when the company fell out of compliance with rules requiring the timely filing of periodic reports with the SEC. Last month, the NASDAQ hearings panel granted UDF IV a filing extension to continue listing its shares on the exchange. The company had until October 17th to become current, but did not meet the filing deadline, which resulted in its subsequent delisting from NASDAQ.

Prior to the suspension, shares of UDF IV had a 52-week trading range of $3.20-$18.31 per share. The last reported book value per share of $16.63 was disclosed in September 2015.

In a letter to shareholders, UDF IV said that because it does not have current financial information available, its board expresses no opinion and remains neutral regarding whether shareholders should accept or reject the tender offer. The board is urging each shareholder to make its own decision based on all of the available information, including the adequacy of the offer price in light of the shareholder’s own investment objectives, liquidity needs, and individual circumstances.

As reported by The DI Wire, the original tender offer was announced earlier this month.

Based in Moraga, California, MacKenzie Capital Management has specialized in the area of discounted real estate securities and asset management since its formation in 1982.

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