Dear Investors,
We want to share an important update regarding the assets associated with Versity Investments and recent legal developments presently affecting distributions.
In 2022, we began the process of buying out our partner, Brian Nelson, to streamline operations and better protect investor capital. Unfortunately, the financing for that buyout fell through in 2024.
A legal dispute regarding the buyout has been pending for several months, and certain rulings have been made regarding ownership and management of Versity Investments. The court has determined that we maintain majority control over operations and management, but Brian has majority voting power on financial matters within the structure of Versity Investments controlled assets.
Shortly after this ruling, we were in the process of closing the sale of a Versity Investments controlled asset. Since the closing, Brian has directed a substantial portion of the disposition proceeds away from their intended use, which was to pay property-level accounts payable and critical mortgage obligations. We voted against these actions and believe these funds should be used as originally intended to support the property and its investors.
Unfortunately, Brian’s direction of funds to other purposes has delayed the release of proceeds held in escrow since March 19th, and disrupted the broader financial operations of the portfolio, including property cash flow, disbursements, and in some cases, even mortgage payments.
As a result, we’ve made the difficult but necessary decision to temporarily pause distributions across all Versity Investments assets and offerings.
You will receive asset-specific updates within 24 hours via email, but we felt it was important to communicate this overarching situation directly and promptly.
We understand how much you rely on both transparency and consistent distributions, especially knowing that some distributions were only recently reinstated. Please know we are doing everything within our control to protect your investment and bring resolution to this matter as quickly as possible.
We will keep you updated as developments unfold.
Best Regards,
Blake Wettengel
Tanya Muro