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Al Hartman Slams Silver Star (SLVP) Leadership, Cites Fiduciary Breach Over Stock Grant and Gains Broad Shareholder Support for Board Ouster

by Snowball Research Team

Summary

In this letter, Al Hartman condemned Silver Star CEO Gerald Haddock for awarding himself 1 million shares, calling it excessive and a breach of fiduciary duty. Hartman claimed that over 97% of shareholders he spoke with—representing nearly 20% of total shares—support removing Haddock and the board. He argued that the stock grant signals desperation and potential legal liability, especially given the company’s declining value. Hartman invited shareholders to contact him directly to discuss concerns and indicated that many are prepared to pursue litigation against Haddock following his removal.

Dear Silver Star Properties Shareholders,

The Death Knell for Haddock’s Leadership at Silver Star

Gerald Haddock disclosed yesterday that he was awarded 1 million shares of stock in Silver Star. As I have stated before, the Company could not get a large reputable compensation expert to endorse the proposed Haddock compensation because they deemed it excessive.

I have reached out to over 50 of the top shareholders in the Company regarding my anticipated proxy solicitation at the upcoming annual meeting of Silver Star. Of the 35 I talked to, 33 said that Haddock and his colleagues should be removed from the board. Only 2 are in favor of keeping them. The shareholders I talked to represent almost 20% of the Company’s total shares. Of these, 97% by share count want Haddock replaced. I believe that the two that initially favored Haddock will likely change their minds now that they know Haddock has awarded himself 1 million shares of stock.

The recent stock grant to Haddock I believe demonstrates a breach of fiduciary duty by Haddock and the other members of the Executive Committee, and represents the final nail in the coffin for their leadership. It looks like a move of desperation before he gets removed. When running a public company, CEOs and board members should always put the investors first. It is one thing to destroy a company, but it is even worse to pay yourself excessively when the value is dropping. By taking excessive compensation in both stock and salary, it is clear to the attorneys I have been talking to that Haddock is creating personal liability for himself. Over half of the shareholders that I talked to want to start a litigation against Haddock once he is removed to seek recovery.

If you are a shareholder interested in hearing more about our concerns regarding the Company and Haddock’s mismanagement, please email us at ir@hartman-investments.com the following information:

Name:
Email:
Phone:
Address:
Sincerely,
Al Hartman

Source:

https://www.sec.gov/Archives/edgar/data/831616/000110465925034209/tm2512207d1_dfan14a.htm

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