Hartman Group Targets Silver Star (SLVS) With Campaign on Debt Defaults, Mismanagement, and Capital Return Plan

Summary

The Evidence is Overwhelming: Time for New Leadership

September 16, 2025

Dear Shareholders,

The growing evidence of management failures, potential fraud, and reckless financial decisions has reached a critical point. The shareholder vote represents our opportunity to save this company from further destruction and protect your investment.

Pattern of Fraudulent Conduct

Current management's actions reveal a deliberate pattern of concealment and manipulation designed to hide their catastrophic failures from shareholders:

· Deliberate concealment of financial records - Refusing legally mandated books and records requests while properties face foreclosure proceedings, deliberately preventing shareholders from understanding the scope of mismanagement

· Discriminatory stock distribution - Denied 20% of investors their rightful shares because they were "a part of the Hartman group," (a direct quote from CEO Haddock’s own text) manipulating shareholder rights to maintain control

· Lying about Consent Solicitation to SEC - Filed incomplete information regarding Consent Solicitation that did not include the Revocations, showing a willingness to mislead federal regulators

This isn't mismanagement. It appears to be systematic fraud that could result in legal consequences.

The Pattern of Reckless Borrowing Continues

Their own 8-K filing reveals the shocking timeline of the latest financial disaster:

· August 9, 2025: The Walgreens loan matured, and management failed to refinance or repay the $50.3 million obligation

· August 13, 2025: Lender declared default, triggering penalty interest rates that will cost shareholders millions

Reckless Over-Leveraging Despite Warnings

We predicted this crisis more than 8 months ago. Instead of heeding repeated warnings about over-leveraging, current management doubled down on their destructive strategy:

· Ignored our leverage warnings - We repeatedly stated the balance sheet was dangerously over-leveraged, but they continued borrowing at ruinous rates

· Fire-sold properties to fund speculation - Rather than pay down debt and stabilize operations, they sold assets to chase risky new investments

· Created the exact insolvency crisis we predicted - Multiple defaults and foreclosure notices confirm our analysis was correct and their promises false

Concealing the True Value from Shareholders

Through systematic concealment and stonewalling of legal disclosure requirements, current management has prevented shareholders from understanding where their investments stand—and now we know why:

· Misused proceeds from asset sales - Millions in property sale proceeds not being used to pay down debt or distributed to shareholders as they should have been

· Concealed property deterioration - Hidden the true extent of potential operational failures and declining performance under their mismanagement

· Masked the real financial condition - Foreclosure notices reveal they've been hiding material defaults while making false promises about "increased value" and future success

Their refusal to provide transparency isn't just obstruction—it's evidence of potential criminal concealment of material facts from shareholders.

Time for Accountability

This is our chance to end this potentially criminal leadership. The following examples come directly from their own SEC filings:

· Multiple loan defaults under current management

· Foreclosure notices on major properties

· Properties that can't generate sufficient income to service their debt

Meanwhile, they've made ZERO distributions to shareholders while refusing to show any financial documents that would account for where shareholder money is going. This is a clear violation of their fiduciary duty and potentially criminal concealment.

Our Return of Capital Plan: Proven Value Creation

Despite their catastrophic mismanagement, Silver Star's underlying value remains at approximately $130 million. Our plan will unlock this value through asset sales as follows:

· Sell Walgreens and mini storage immediately - pay off existing capital

· Immediate operational excellence to create value- Staff all properties with qualified leasing professionals and implement aggressive occupancy campaigns

· Maximize asset values - When we sell properties, it will be at fair market prices to generate maximum returns for shareholders—not fire-sale prices

Don't Let Them Steal Your Equity

Current management is now pressuring shareholders to sell at 42 cents per share. This desperate attempt to eliminate shareholders before accountability arrives proves they know the properties have real worth when properly managed.

Do not sell your shares at these manipulated prices. Do not believe their false claims about "zero liquidation value." Your investment is worth far more than they're offering.

The Choice Is Crystal Clear

The properties are there. The $130 million in underlying value is real. What's missing is competent leadership focused on returning capital to the shareholders instead of enriching themselves.

Vote for accountability. Vote for transparency. Vote for results.

Sincerely,

Al Hartman

The Hartman Shareholder Alliance

Source:

https://www.sec.gov/Archives/edgar/data/831616/000110465925091325/tm2526393d1_dfan14a.htm