| • | | MacKenzie determined its offer price based on its own analysis and conceded that it did not obtain current independent valuations or appraisals for the company’s assets and did not retain an independent advisor to evaluate or render opinion as to the fairness of the $5.25 offer price. |
| • | | None of the CNL Healthcare Properties’ directors, executive officers, affiliates or subsidiaries intend to sell their shares to MacKenzie. |
| • | | The MacKenzie offer specifies that any distributions made after Sept. 30, 2019, will be assigned to them. Our second quarter distribution was $0.0512 per share and was paid in June. The board of directors declared the third quarter distributions in the amount of $0.0512 and it is anticipated to be paid to shareholders inmid-September. |
For these and other reasons stated in our Form8-K filing with the Securities and Exchange Commission (SEC) found at sec.gov,our board of directors unanimously concluded that the MacKenzie offer is not in the best interest of shareholders.In addition to this letter, we encourage you to carefully read our Form8-K, before making any decision to tender your shares.
We recognize that due to the suspension of the company’s stock redemption plan and the lack of a current trading market for our shares, shareholders may decide to accept the MacKenzie mini-tender offer based on, among other things, their individual liquidity needs and financial situation. Our board appreciates that shareholders must evaluate whether to tender their shares based on all the information available, including the factors considered by the board and described in our filing with the SEC.
In deciding, please keep in mind that the board of directors or company can provide no assurance with respect to future distributions or the value of our shares, which can change periodically, or forward-looking liquidity timing for shareholders.
As always, thank you for your investment, confidence in us and continued support. If you have questions regarding this mini-tender offer, I encourage you to contact your financial advisor.
Sincerely,
![LOGO](https://capedge.com/proxy/8-K/0001193125-19-230756/g796243g0827090122572.jpg)
Stephen H. Mauldin
President & Chief Executive Officer
cc: Financial representative