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Hartman/Silver Star War Continues; Hartman Encourages Consent Revocation

Hartman/Silver Star War Continues; Hartman Encourages Consent Revocation. Alternative investments, Hartman, Silver Star, REIT, Real Estate Investment Trust, financial services, commercial real estate

The ongoing war between Silver Star Properties REIT, a publicly registered non-traded real estate investment trust formerly known as Hartman Short Term Income Properties XX Inc., and Allen Hartman, Silver Star’s former CEO, further escalated recently with The Hartman Group – comprised of Hartman and several of his affiliates and family members – encouraging stockholders to revoke their consent.

In a recent filing, The Hartman Group reminded stockholders of their right to change their consent decisions. Furthermore, the filing asked stockholders to revoke their consent, whether or not they have actually provided it. “Although submitting a blue consent revocation card will not have any legal effect if you have not previously submitted a white consent card,” the filing said, “it will demonstrate support for the Hartman Group’s positions…”

The Hartman Group specifically targeted proposals that deal with  the re-election of three incumbent directors to Silver Star’s board of directors, effectively removing Hartman from the board (as previously reported by The DI Wire) as well as a proposal concerning compensation for Silver Star’s executives. Through the release, The Hartman Group stated that they “strongly believe” that these proposals are not in the best interests of the company’s shareholders.

The filing also states that Hartman and his affiliates own 13.14% of the company’s common stock, making them the largest Silver Star shareholder.

This filing comes only a short time after Silver Star’s executive committee, including members Gerald Haddock, Jack Tompkins, and James Still, claimed that Hartman was seeking “personal control” of Silver Star and blamed Hartman for the company’s recent Chapter 11 bankruptcy, among other accusations.

It has been nearly a year since Silver Star removed Hartman as executive chairman, and the Hartman Group initiated legal proceedings against the company. Silver Star followed up with a lawsuit of its own.

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