Hartman Shareholder Alliance Blasts Silver Star Properties REIT (SLVS) for Governance Failures, Delays, and Unequal Share Distribution
Silver Star’s Deception and the Accountability You Deserve
October 27, 2025
Dear Shareholder,
"Woe to those who call evil good and good evil, who put darkness for light and light for darkness."
— Isaiah 5:20
These words speak to what is happening at Silver Star today. They continue to delay the court-ordered annual meeting for a shareholder vote. They are using your money like it is in their piggy bank.
Silver Star’s Pattern of Deception
- Soliciting Proxy Votes Without Audited Financial Statements
In May 2025, Silver Star told a Maryland court that the deadline for holding an annual meeting needed to be extended because it would be violating federal law if it solicited proxy votes without audited financial statements for fiscal years 2023 and 2024. After the Maryland court extended the deadline to October 21, 2025, Silver Star did not secure audited financial statements before soliciting proxy votes. Instead, Silver Star proceeded to solicit proxy votes without audited financial statements. Indeed, to this day, Silver Star still has not provided shareholders with audited financial statements for fiscal years 2023 and 2024.
- Discriminating Against Approximately 20% of Shareholders
In June 2025, management executed a 3:1 "flip-in" stock distribution that tripled certain shareholders' holdings — including management's own shares — while deliberately excluding approximately 20% of shareholders. We believe this “flip-in” distribution was impermissible.
When questioned why 20% were excluded, Haddock’s response was: “They are a part of the Hartman group. You can have your attorney call my attorney."
To create an unfair advantage for themselves in the proxy solicitation, Silver Star’s entrenched directors selectively decided who deserves additional shares to vote and who doesn't.
- Improperly Refusing Books and Records Requests
Despite our formal requests to receive books and records pursuant to Maryland law, and our multiple follow up requests, Silver Star’s entrenched directors have refused to provide updated shareholder lists, among other information, so that they have updated information about shareholders to contact during the proxy solicitation, but the Hartman Group does not.
- Omitting Consent Revocations
In November 2023, Silver Star adopted a new bylaw permitting shareholder action by less than unanimous consent and initiated a written consent solicitation for, among other things, the election of directors. The only candidates listed for Silver Star’s consent solicitation were Haddock, Still, and Tompkins; there was no option or opportunity to nominate or vote for any other candidate.
Silver Star reported to the SEC that they received 51% shareholder support in their consent solicitation. What they concealed: We delivered consent revocations from holders of approximately 30% of outstanding shares. Thus, substantially less than 51% votes received supported Silver Star’s consent solicitation.
Needless Delay
The courts have been clear. On October 16, 2025, the federal judge made it clear that no relief from the Maryland court’s October 21, 2025 deadline for Silver Star’s annual meeting was needed. When it set the October 21, 2025 deadline nearly four months ago, the Maryland court said "No further extension will be granted."
Yet here we are with an indefinite postponement.
It's Time to Make Your Voice Heard
Reach out to the board members and demand they count the vote effective October 21st. No further delays will be tolerated. Throw the bums out before they destroy the Company further.
Contact them at:
Gerald Haddock
Email: Gerald@haddockinvestments.com
Phone: 817-307-5146
Jim Still
Email: jim.still@rdcadvisors.com
Phone: 267-226-0241
Jack Tompkins
Email: jtompkins@artaequity.com
Phone: 713-817-3515
Thank you for your support.
Sincerely,
Al Hartman
The Hartman Shareholder Alliance
Source:
https://www.sec.gov/Archives/edgar/data/831616/000110465925103178/tm2529641d1_dfan14a.htm
Member discussion