9.70% Shareholder Frank Kavanaugh Addresses Concerns Raised by Jon S. Wheeler and Calls for Augmentation of Independent Board Members at Medalist Diversified REIT, Inc.

NEWPORT BEACH, Calif., May 10, 2023 /PRNewswire/ -- The following press release is distributed on behalf of Frank Kavanaugh, who owns 9.70% of Medalist Diversified REIT's (NASDAQ: MDRR), outstanding shares and supports the company's management and board -- In response to a press release from Jon S. Wheeler, 9.70% shareholder Frank Kavanaugh acknowledges the concerns raised by Wheeler and other shareholders in Medalist Diversified REIT, Inc. (NASDAQ: MDRR). These concerns stem from the company's net losses totaling over $9,000,000 in 2021 and 2022, the impairment of the Hampton Inn Property resulting in a loss of $3,494,058, the $6,885,029 compensation paid to its management team since its inception, and an additional $3,500,000 in termination & transaction fees voted in by Independent Directors who are pushing the company to sale instead of looking to enhance the position of the shareholders.

He appreciates the efforts of the "Special Committee" and believes reconsideration of the current sale plan and timing is crucial for enhancing shareholder value. MDRR has solid assets, reasonable debt and duration, and believes William Elliott's focus on product types and markets is worthwhile. Continuing the process of selling assets or the company at these levels will further erode shareholder equity.

Change is overdue. Tim Messier's mismanagement destroyed 90% of shareholder value. Kavanaugh urges the board to replace him with interim CEO William Elliott, stabilize operations, and devise a solid plan. The company suffered over $9M losses in two years, a $3.9M capital loss from a flawed hotel strategy, dividends paid from equity eroding capital, and a value-diminishing external management agreement.

Kavanaugh proposes the independent board members take the following actions:

1. Appoint 2 additional independent board members to avoid the appearance of impropriety.
2. Suspend the "Special Committee" sale process until the board, and management is reconstituted.
3. Consider termination of Mr. Messier from leadership.
4. Develop a focused plan for improving financial performance & reversing losses by considering:
1. Suspending dividends for 12 months while restructuring the operations.
2. Begin consistent and appropriate common & preferred share repurchases.
3. Review external management agreement and consider restructuring to reflect circumstances.
4. Discuss conversion of unpaid management fees to equity
5. Prioritize shareholder transparency, providing updates on progress, financial performance, and strategic initiatives.

By adopting these strategies, Medalist Diversified REIT, Inc. can rebuild shareholder trust and show dedication to stakeholder value. As a major shareholder, Kavanaugh pledges to hold leadership accountable and support management and the board in enhancing the company's performance.

For more information or to voice your support, please contact Frank Kavanaugh.

For media inquiries, please contact:

Frank Kavanaugh
Fort Ashford Funds, LLC
[email protected]
949 212-2222

About Medalist Diversified REIT, Inc.: MDRR is a Maryland corporation formed in 2015 that went public in 2018, with a focus on acquiring, repositioning, renovating, leasing, and managing income-producing properties across the southeastern United States. The company's primary investments include Grocery Anchored Centers and Industrial Properties.

About Fort Ashford Funds, LLC: founded in 2001 by Susan & Frank Kavanaugh, originated as a family office and now operates as a private investment firm. Focusing on direct investments across asset classes like business growth equity, real estate, and social impact, the firm seeks to engage and elevate communities. Investing in non-control equity positions in private and public companies, primarily within Community Banking, Real Estate, and Education sectors, Fort Ashford strives to generate stakeholder value and foster local community growth.

SOURCE Frank Kavanaugh