<SEC-DOCUMENT>0001013594-24-000256.txt : 20240308
<SEC-HEADER>0001013594-24-000256.hdr.sgml : 20240308
<ACCEPTANCE-DATETIME>20240308121538
ACCESSION NUMBER:		0001013594-24-000256
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20240307
DATE AS OF CHANGE:		20240308

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Whitestone REIT
		CENTRAL INDEX KEY:			0001175535
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		ORGANIZATION NAME:           	05 Real Estate & Construction
		IRS NUMBER:				760594970
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-34855
		FILM NUMBER:		24733219

	BUSINESS ADDRESS:	
		STREET 1:		2600 SOUTH GESSNER
		STREET 2:		SUITE 500
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77063
		BUSINESS PHONE:		713-827-9595

	MAIL ADDRESS:	
		STREET 1:		2600 SOUTH GESSNER
		STREET 2:		SUITE 500
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77063

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HARTMAN COMMERCIAL PROPERTIES REIT
		DATE OF NAME CHANGE:	20020613

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Erez REIT Opportunities LP
		CENTRAL INDEX KEY:			0002014584
		ORGANIZATION NAME:           	
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A

	BUSINESS ADDRESS:	
		STREET 1:		270 NORTH AVENUE
		STREET 2:		SUITE 404
		CITY:			NEW ROCHELLE
		STATE:			NY
		ZIP:			10801
		BUSINESS PHONE:		917-455-9764

	MAIL ADDRESS:	
		STREET 1:		270 NORTH AVENUE
		STREET 2:		SUITE 404
		CITY:			NEW ROCHELLE
		STATE:			NY
		ZIP:			10801
</SEC-HEADER>
<DOCUMENT>
<TYPE>DFAN14A
<SEQUENCE>1
<FILENAME>erezdfan14-03072024.htm
<TEXT>
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    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">UNITED STATES</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">SECURITIES AND EXCHANGE COMMISSION</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">Washington, D.C. 20549</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">SCHEDULE 14A</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">(Rule 14a-101)</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">SCHEDULE 14A INFORMATION</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">Proxy Statement Pursuant to Section 14(a) of</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">The Securities Exchange Act of 1934</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;">Filed by the Registrant [&#160; ]</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;">Filed by a Party Other than the Registrant [X]</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;">Check the Appropriate Box:</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="margin-left: 19.2pt; line-height: 11.4pt;">[&#160; ] Preliminary Proxy Statement</div>
    <div style="text-indent: -14.4pt; margin-left: 33.6pt; line-height: 11.4pt;">[&#160; ] Confidential, for Use of the Commission Only (as permitted by<br>
      Rule 14a-6(e)(2))</div>
    <div style="margin-left: 19.2pt; line-height: 11.4pt;">[&#160; ] Definitive Proxy Statement</div>
    <div style="margin-left: 19.2pt; line-height: 11.4pt;">[&#160; ] Definitive Additional Materials</div>
    <div style="margin-left: 19.2pt; line-height: 11.4pt;">[X] Soliciting Material under &#167; 240.14a&#8211;12</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 18.25pt; font-size: 14pt; font-weight: bold;">WHITESTONE REIT</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">(Name of registrant as specified in its charter)</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">Erez REIT Opportunities LP</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">Erez Asset Management, LLC</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">Bruce Schanzer</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">Catherine Clark</div>
    <div style="text-align: center; line-height: 11.4pt; margin-bottom: 6pt; font-weight: bold;">(Name of person(s) filing proxy statement, if other than the registrant)</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">Payment of Filing Fee (Check the appropriate box):</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-indent: 20pt; line-height: 11.4pt;">[X]<font class="TRGRRTFtoHTMLTab" style="text-indent: 0px; font-size: 5.2pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font>No fee required.</div>
    <div style="text-indent: 20pt; line-height: 11.4pt;">[&#160; ]<font class="TRGRRTFtoHTMLTab" style="text-indent: 0px; font-size: 5.33pt;">&#160;&#160;&#160;&#160;</font>Fee paid previously with preliminary materials.</div>
    <div style="text-indent: 20pt; line-height: 13.7pt;">[&#160; ]<font class="TRGRRTFtoHTMLTab" style="text-indent: 0px; font-size: 5.33pt;">&#160;&#160;&#160;&#160;</font>Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11</div>
    <div class="BRPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
      <div class="BRPFPageBreak" style="page-break-after: always;">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="line-height: 13.7pt;"><br style="line-height: 13.7pt;">
    </div>
    <div style="line-height: 13.7pt;"><br style="line-height: 13.7pt;">
    </div>
    <div style="text-align: justify; text-indent: 20pt; line-height: 11.4pt;">Erez REIT Opportunities LP, together with the other participants named herein (collectively, &#8220;Erez&#8221;), intends to
      file with the Securities and Exchange Commission a preliminary proxy statement and an accompanying proxy card to be used to solicit votes for the election of its slate of director nominees at the upcoming 2024 annual meeting of shareholders of
      Whitestone REIT, a Maryland real estate investment trust (the &#8220;Issuer&#8221;).</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; text-indent: 20pt; line-height: 11.4pt; margin-bottom: 12pt;">On March 7, 2024, Erez and its affiliates issued the press release:</div>
    <div style="line-height: 11.4pt; margin-bottom: 12pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>ex991toerezdfan14-03072024.htm
<TEXT>
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         Copyright 1995 - 2024 Broadridge -->
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  <div>
    <div style="text-align: right; line-height: 12.55pt; font-family: 'Times New Roman',Times,serif; font-weight: bold;"> Exhibit 99.1<br>
    </div>
    <div style="text-align: right; line-height: 12.55pt; font-family: 'Times New Roman',Times,serif; font-weight: bold;"> <br>
    </div>
    <div style="text-align: center; line-height: 12.55pt; font-weight: bold;">EREZ NOMINATES TWO CANDIDATES FOR WHITESTONE REIT BOARD OF TRUSTEES</div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div style="text-align: center; line-height: 12.55pt;"><font style="font-weight: bold;">&#160;</font><font style="font-style: italic;">The Company has a track record of poor capital allocation and ineffective governance </font></div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div style="text-align: center; line-height: 12.55pt; font-style: italic;">Urges Whitestone&#8217;s shareholders to demand answers to critical questions </div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div style="line-height: 12.55pt;"><font style="font-weight: bold;">New Rochelle, NY &#8211; March 7, 2024 &#8211;</font>
      Erez Asset Management, LLC (&#8220;Erez&#8221;), a shareholder of Whitestone REIT (NYSE: WSR) (&#8220;Whitestone&#8221; or the &#8220;Company&#8221;), has provided Whitestone notice of Erez&#8217;s intention to nominate two candidates to serve on the Whitestone Board of Trustees after years
      in which Whitestone has underperformed its peers and potential. Erez&#8217;s nominees will stand for election at the 2024 annual meeting of Whitestone shareholders, which Erez anticipates will be held in May. </div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div style="line-height: 12.55pt;">This morning, Whitestone&#8217;s management team is holding a conference call to address questions from Whitestone shareholders. Erez urges
      Whitestone&#8217;s shareholders to demand answers regarding the Company&#8217;s history of poor capital allocation decisions and the ineffective governance framework within which those decisions have been made.&#160; </div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div style="line-height: 12.55pt;">In particular, Erez encourages Whitestone shareholders to ask the following questions on today&#8217;s call:</div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" id="z89771f127e3f4a38b56d067291676fb3" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

          <tr>
            <td style="width: 36pt; vertical-align: top; text-align: right;">
              <div style="text-align: left; margin-left: 18pt; line-height: 12.55pt;">1)</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="line-height: 12.55pt;">It has been reported that Whitestone received an indication of interest to take the Company private from Fortress Investment
                Group LLC (&#8220;Fortress&#8221;), a well-regarded and well-financed investment manager.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">1</sup> We understand the proposed price was a significant premium to the
                market price. Reports suggest you &#8220;rebuffed&#8221; the offer.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">2</sup> Presumably, management and the Board feel the intrinsic value of the Company is even higher than the price at which Fortress was prepared to transact. If that is the case,
                why haven&#8217;t you prioritized investing the Company&#8217;s capital, or your personal capital, into Whitestone&#8217;s undervalued stock?&#160; &#160; <br>
                </div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" id="zc576f6153c414c7aa6e8b2b2b0ae9cc4" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

          <tr>
            <td style="width: 36pt; vertical-align: top; text-align: right;">
              <div style="text-align: left; margin-left: 18pt; line-height: 12.55pt;">2)</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="line-height: 12.55pt;">&#8220;Buy low, sell high&#8221; is a surefire way to make money. The opposite is true too. You have continuously bought properties (at
                prices that then became the basis for NAV) and then sold equity in the company, and by extension, in those properties, well below NAV.&#160; Worse, you then use the capital raised at a discount to NAV to engage in the same value-destructive &#8220;buy
                high, sell low&#8221; strategy.&#160; We estimate approximately $75-80 million in shareholder equity value has been destroyed due to equity issuances below NAV over the years.&#160; Why are you selling portions of Whitestone&#8217;s asset base at prices well
                below NAV? <br>
                </div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" id="z49200fe3fe534f97bd8c297d6d86b63c" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

          <tr>
            <td style="width: 36pt; vertical-align: top; text-align: right;">
              <div style="text-align: left; margin-left: 18pt; line-height: 12.55pt;">3)</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="line-height: 12.55pt;">Being a public company has unavoidable costs. If the cash flows in the core business are large enough, these costs are de
                minimis. But Whitestone is not large, and its public company costs are a substantial drag on cash flow and earnings. Why should Whitestone remain an independent public company, with all the attendant costs, when &#8220;excess&#8221; G&amp;A expenses
                (public company and standalone corporate costs well above other shopping center REITs) are, we estimate, approximately $7-8 million per year and drag earnings down by roughly 15% per year? <br>
                </div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <div> <br>
      </div>
      <div> <br>
        <hr noshade="noshade" align="left" style="background-color: #000000; border: 0px; height: 1px; width: 2in; margin-left: 0pt; margin-right: auto; color: #000000;">
        <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">1</sup> See &#8220;Fortress Approached Whitestone REIT About a Takeover,&#8221; Bloomberg, October 26, 2023 available at
          https://www.bloomberg.com/news/articles/2023-10-26/fortress-said-to-approach-whitestone-reit-with-takeover-offer.</div>
        <div style="line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">2</sup> Id. </div>
      </div>
      <div> <br>
      </div>
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      <table cellspacing="0" cellpadding="0" id="z2177584b3b4a4e3b9e862b8003550267" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

          <tr>
            <td style="width: 36pt; vertical-align: top; text-align: right;">
              <div style="text-align: left; margin-left: 18pt; line-height: 12.55pt;">4)</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="line-height: 12.55pt;">At Whitestone&#8217;s current debt levels (close to 8x debt/EBITDA last quarter), many long-only REIT investors will not invest. How
                will Whitestone ever attract enthusiastic real estate investors at current debt levels, or do you plan on further dilutive equity raises or value-destructive asset sales to reduce leverage? What mistake got you into this capital structure?<br>
                </div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" id="z859184769da5455488e96874fd93ecc4" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

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            <td style="width: 36pt; vertical-align: top; text-align: right;">
              <div style="text-align: left; margin-left: 18pt; line-height: 12.55pt;">5)</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="line-height: 12.55pt;">If you were organizing a shopping center REIT like Whitestone today and picking a group of trustees to oversee the strategy
                and execution of such a business, would you again select a lawyer, a PR professional, an energy executive, an investment banker who specializes in bankruptcy and a former politician? Why wouldn&#8217;t you want at least a few people who have
                substantial experience owning and operating a portfolio of shopping centers and/or managing a public REIT among those trustees? Do you think there is a connection between Whitestone&#8217;s chronic underperformance, poor capital allocation
                decisions, subscale platform and massive NAV discount, and the fact that Whitestone has no trustees with any shopping center or REIT capital markets experience?</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div style="line-height: 12.55pt;">Erez&#8217;s two exceptional and experienced trustee candidates &#8211; Bruce Schanzer, a former shopping center REIT CEO who now leads Erez, and
      Cathy Clark, a former shopping center REIT senior investment executive &#8211; intend to ask these questions if and when they are seated on the Whitestone Board and provide independent oversight of the Company&#8217;s strategy and execution. Unlike the current
      independent members of the Board, Mr. Schanzer and Ms. Clark have extensive real estate and shopping center REIT experience.</div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div style="line-height: 12.55pt;">Erez intends to file and mail proxy materials to Whitestone shareholders in support of the election of its candidates. Other than asking
      hard questions of management, Whitestone shareholders do not need to take any action at this time.</div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div style="line-height: 12.55pt; font-weight: bold;">About Erez Asset Management, LLC</div>
    <div style="line-height: 12.55pt;">Erez Asset Management, LLC is an investment management firm focused on undervalued small market cap REITs. Erez was founded in 2022 by
      Bruce Schanzer, former CEO of Cedar Realty Trust, a shopping center REIT, after the successful monetization of Cedar. Erez seeks to acquire meaningful stakes in REITs in which it believes it can work collaboratively with the management team and the
      board to help catalyze improved performance and share price appreciation by pursuing operational initiatives and strategic alternatives intended to benefit all stakeholders.&#160; </div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div style="line-height: 12.55pt; font-weight: bold;">Contacts</div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div style="line-height: 12.55pt;">Media:</div>
    <div style="line-height: 12.55pt;">Mark Semer / Iain Hughes</div>
    <div style="line-height: 12.55pt;">Gasthalter &amp; Co.</div>
    <div style="line-height: 12.55pt;">(212) 257-4170</div>
    <div style="line-height: 14.75pt;">erez@gasthalter.com&#160;</div>
    <div style="line-height: 14.75pt;"><br style="line-height: 14.75pt;">
    </div>
    <div style="line-height: 14.75pt;">Investors:</div>
    <div style="line-height: 14.75pt;">Jonathan Salzberger / Scott Winter</div>
    <div style="line-height: 14.75pt;">Innisfree M&amp;A Incorporated </div>
    <div style="line-height: 14.75pt;">212-750-5833</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" class="BRPFPageBreakArea">
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    </div>
    <div style="line-height: 14.75pt;"><br style="line-height: 14.75pt;">
    </div>
    <div style="line-height: 12.55pt; font-weight: bold;">DISCLAIMER</div>
    <div style="line-height: 12.55pt;">This material does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in any
      state to any person. In addition, the discussions and opinions in this press release and the material contained herein are for general information only, and are not intended to provide investment advice. All statements contained in this press release
      that are not clearly historical in nature or that necessarily depend on future events are &#8220;forward-looking statements,&#8221; which are not guarantees of future performance or results, and the words &#8220;may,&#8221; &#8220;might,&#8221; &#8220;could,&#8221; &#8220;will,&#8221; &#8220;should,&#8221; &#8220;expect,&#8221;
      &#8220;plan,&#8221; &#8220;anticipate,&#8221; &#8220;believe,&#8221; &#8220;estimate,&#8221; &#8220;predict,&#8221; &#8220;potential&#8221; or &#8220;continue,&#8221; the negative of these terms and other comparable terminology are generally intended to identify forward-looking statements. Any such forward-looking statements
      contained herein are based on current assumptions, estimates and expectations, but are subject to a number of known and unknown risks and significant business, economic and competitive uncertainties that may cause actual results to differ materially
      from expectations. Any forward-looking statements should be considered in light of those risk factors. The Participants (as defined below) caution readers not to rely on any such forward-looking statements, which speak only as of the date they are
      made. Certain information included in this press release is based on data obtained from sources considered to be reliable. No representation is made with respect to the accuracy or completeness of such data, and any analyses provided to assist the
      recipient of this press release in evaluating the matters described herein may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results. Accordingly, any analyses should also
      not be viewed as factual and also should not be relied upon as an accurate prediction of future results. Any figures are unaudited estimates and subject to revision without notice. The Participants disclaim any intent or obligation to publicly update
      or revise any such forward-looking statements to reflect any change in expectations or future events, conditions or circumstances on which any such forward-looking statements may be based, or that may affect the likelihood that actual results may
      differ from those set forth in such forward-looking statements.</div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div style="line-height: 12.55pt; font-weight: bold;">CERTAIN INFORMATION CONCERNING THE PARTICIPANTS</div>
    <div style="line-height: 12.55pt;">Erez REIT Opportunities LP (&#8220;Erez Opportunities&#8221;), together with the other participants named herein (collectively, &#8220;Erez&#8221;), intends to
      file a preliminary proxy statement and an accompanying proxy card with the Securities and Exchange Commission (&#8220;SEC&#8221;) to be used to solicit votes for the election of its slate of highly-qualified trustee nominees at the 2024 annual meeting of
      shareholders of Whitestone REIT, a Maryland real estate investment trust (the &#8220;Trust&#8221;).</div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div style="line-height: 12.55pt;">EREZ STRONGLY ADVISES ALL SHAREHOLDERS OF THE TRUST TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS, INCLUDING A PROXY CARD, AS
      THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC&#8217;S WEB SITE AT HTTP://WWW.SEC.GOV. IN ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION WILL PROVIDE COPIES OF
      THE PROXY STATEMENT WITHOUT CHARGE, WHEN AVAILABLE, UPON REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO THE PARTICIPANTS&#8217; PROXY SOLICITOR.</div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div style="line-height: 12.55pt;">The participants in the proxy solicitation are expected to be Erez Opportunities, Erez Asset Management, LLC (&#8220;Erez Asset Management&#8221;),
      Bruce Schanzer and Catherine Clark (collectively, the &#8220;Participants&#8221;).</div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div style="line-height: 12.55pt;">As of the date hereof, Erez Opportunities directly beneficially owned 270,000 common shares, par value $0.001 per share (the &#8220;Common
      Shares&#8221;), of the Trust. As of the date hereof, Erez Asset Management may be deemed to beneficially own 505,000 Common Shares, including 235,000 Common Shares beneficially owned by certain separately-managed accounts managed by Erez Asset Management
      and, by virtue of its role as investment manager of Erez Opportunities, the 270,000 Common Shares beneficially owned by Erez Opportunities. As of the date hereof, Mr. Schanzer may be deemed to beneficially own 644,900 Common Shares, including 139,900
      Common Shares directly beneficially owned by Mr. Schanzer held in his Fidelity Rollover IRA and, by virtue of his position as Chairman and Chief Investment Officer of Erez Asset Management, the 505,000 Common Shares beneficially owned by Erez Asset
      Management. As of the date hereof, Ms. Clark does not beneficially own any Common Shares. As of the date hereof, the Participants may be deemed to collectively beneficially own 644,900 Common Shares.</div>
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