WSR - EREZ ASSET MANAGEMENT RESPONDS TO FALSE ACCUSATIONS IN WHITESTONE REIT'S PRESS RELEASE | Benzinga
Reiterates the Need for Change at Whitestone, the Shopping Center REIT that Trades at the Biggest Discount to NAV of its Cited Peers
Notes the Irony of a Board Filled with Undisclosed Former Service Providers to Mr. Mastandrea Claiming that One Call with Mr. Mastandrea Constitutes "Collusion"
Encourages Whitestone Shareholders to Vote "FOR" Catherine Clark and Bruce Schanzer and to "WITHHOLD" from David Taylor and Nandita Berry Using the BLUE Proxy Card
NEW ROCHELLE, N.Y., May 6, 2024 /PRNewswire/ -- Erez Asset Management, LLC ("Erez"), a shareholder of Whitestone REIT (NYSE:WSR) ("Whitestone" or the "Company") which has nominated two candidates for election at Whitestone's upcoming 2024 Annual Meeting of Shareholders, today reiterated the need for change at Whitestone and responded to Whitestone's press release falsely accusing Erez of pursuing an offer to acquire the Company.
In its press release earlier today, Whitestone claims to have "discovered" that an early and outdated Erez investor presentation in which Erez discusses Whitestone constitutes "collusion" to acquire the Company. In fact, Erez explored a number of potential strategies related to Whitestone before deciding on its current approach, and Erez is not pursuing an acquisition of Whitestone or using the strategy or tactics of the outdated presentation. The presentation Whitestone touts in its press release was superseded by later presentations and no one who received the earlier presentation is an investor with Erez.
Bruce Schanzer, Chairman of Erez, issued the following statement:
Whitestone today has presented an outdated presentation that Erez made before concluding that there was a superior approach to enhancing the value of Whitestone. The fact is that Erez has not pursued the strategy described in the materials Whitestone so disingenuously and breathlessly touts in its press release today.
Moreover, Erez is not capitalized to acquire Whitestone, is not seeking to raise capital to make an offer, nor does it have any interest in or intention of making an offer. Like any thoughtful investor, Erez spoke with stakeholders before making an investment and pursuing its campaign for board representation. Notably, Erez discontinued all contact with Mr. Mastandrea in October 2023 after a single videoconference with principals and 2-3 subsequent conversations among advisors. There has been no substantive communication with him directly or indirectly in more than six months.
It is very troubling that a group of trustees with no industry experience and a track record of poor corporate governance practices are attempting, with brazen falsehoods, to keep me off this Board. Why is Whitestone so afraid of having an experienced industry executive and investor on the Board? And why would they stoop to such low-road tactics as to mischaracterize an outdated pitch deck, undoubtedly obtained in violation of confidentiality obligations, just to paint one of their engaged shareholders in a bad light?
It is particularly ironic that a REIT that ...