REDIV - SILVER CLIFFS – PHASE TWO
INVESTOR UPDATE | DECEMBER 2025
EXECUTIVE SUMMARY
The Silver Cliffs Phase Two development has achieved a critical milestone with the finalization of all zoning and development agreements across the three project areas—Toquerville, Washington County, and Leeds. With regulatory approvals now complete, the project is positioned to advance into the bonding phase, with completion targeted for February or March 2026. Per the loan agreements, the loan has been extended for six months until May 25, 2026, providing the necessary timeline to complete bonding and secure purchase contracts with non-refundable earnest money. Beginning in January 2026, investors will receive monthly interest payments at a 12% annual rate, continuing until the loan is fully repaid. The team remains on track to retire the loan in full before the May 2026 deadline through a combination of bond proceeds and purchase contract earnest money.
RECENT KEY ACCOMPLISHMENTS | PRIMARY FOCUS AREAS
Regulatory Completion
  • Zoning Finalization: All zoning approvals have been secured across Toquerville, Washington County, and Leeds jurisdictions
  • Development Agreements: All development agreements have been finalized, removing regulatory barriers to project advancement
  • Administrative Readiness: Project positioned for efficient execution through remaining technical and financial milestones
Financial Restructuring
  • Loan Extension Secured: Six-month extension obtained, extending maturity date to May 25, 2026
  • Interest Payment Commencement: Monthly interest payments to investors beginning January 2025 at 12% annual rate
  • Banking Information Collection: Investor representatives and Alison coordinating collection of banking information to facilitate interest payments
Bonding & Capital Formation
  • Bonding Timeline: Infrastructure bonding process commencing with targeted completion in February or March 2026
  • Loan Paydown Strategy: Bond proceeds expected to retire a significant portion, if not all, of the outstanding loan
  • Purchase Contract Pipeline: Pursuing purchase contracts that will generate non-refundable earnest money, which will convert to hard deposits upon bond security
CURRENT FOCUS AREAS
Bonding Process Execution
  • Infrastructure Bond Preparation: Coordinating technical, legal, and financial requirements for bond issuance targeted for Q1 2026
  • Purchase Contract Negotiations: Advancing discussions with buyers to secure contracts with non-refundable earnest money commitments
  • Loan Repayment Coordination: Managing capital flows from bond proceeds and earnest money to ensure full loan retirement before May 2026 deadline
MAJOR MILESTONES
01
Immediate (January 2026)
  • Commence monthly interest payments to all investors at 12% annual rate
  • Complete banking information collection for all investors requiring direct deposit setup
  • Initiate formal bonding process with financial and legal teams
  • Continue purchase contract negotiations and earnest money commitments
02
Q1 2026 (February - March)
  • Complete infrastructure bonding process
  • Deploy bond proceeds toward loan paydown
  • Secure purchase contracts with non-refundable earnest money going hard
  • Execute coordinated loan repayment strategy
03
Before May 25, 2026
  • Retire loan in full through combination of bond proceeds and purchase contract earnest money
  • Transition project to construction and sales phase
PROJECT OUTLOOK
The project has successfully navigated the regulatory approval process and is now positioned for the critical bonding and capital formation phase. With all zoning and development agreements finalized, the team can focus execution on financial milestones that will enable full loan repayment.
The six-month loan extension provides adequate runway to complete the bonding process and secure purchase contracts, both of which represent substantial capital sources for loan retirement. The commencement of 12% interest payments reflects the project's commitment to investor returns while the team executes the final development financing steps.
The dual-path capital strategy—combining bond proceeds with purchase contract earnest money—provides multiple avenues to achieve full loan payoff. Based on current progress and market conditions, the team maintains confidence in retiring the loan before the May 25, 2026 deadline while preserving the strong fundamentals that support anticipated investor returns consistent with original projections.
Anticipated investor returns remain consistent with original projections, and the team is well-positioned to move swiftly through the next development phase once final zoning approvals are secured.
IMPORTANT NOTICE FOR INVESTORS
Interest Payment Information
All investors will begin receiving monthly interest payments at a 12% annual rate starting in January 2026 and continuing each month until the loan is fully repaid by May 25, 2026.
Banking Information Required
If we do not currently have your banking information on file for direct deposit, please provide this information to your investor representative as soon as possible to ensure uninterrupted payment processing.