On September 14, 2016, United Development Funding IV (the “Trust”) received written notice from the Nasdaq Hearings Panel (the “Panel”) that the Panel has granted an extension of the exception previously granted for continued listing of the Trust’s common shares on The Nasdaq Global Select Market. The Trust’s continued listing is subject to the condition that, on or before October 17, 2016, the Trust becomes current in its periodic filings with the U.S. Securities and Exchange Commission (the “SEC”). The Trust must also be able to demonstrate that it satisfies all other quantitative and qualitative requirements for continued listing on The Nasdaq Global Select Market.

As previously disclosed in Current Reports on Form 8-K filed with the SEC on March 21, 2016 and June 3, 2016, the Trust received notice on March 17, 2016 from the Listing Qualifications Department (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) stating that because the Trust had not yet filed its Annual Report on Form 10-K for the year ended December 31, 2015 with the SEC, it was not in compliance with the continued listing requirement set forth in Nasdaq Listing Rule 5250(c)(1). In response to such notice, on May 16, 2016, the Trust submitted to Nasdaq a plan to regain compliance with the applicable listing rule. On May 26, 2016, the Trust received a determination letter from the Staff stating that the Staff had determined to deny the Trust’s request for continued listing on Nasdaq due to the Trust’s continued non-compliance with the applicable listing rule.

The Trust then timely requested a hearing before the Panel to address the Staff's determination. The hearing was held on July 7, 2016, at which the Trust presented its plan to evidence compliance with all applicable criteria for continued listing on Nasdaq for the Panel’s consideration. 

As previously disclosed in a Current Report on Form 8-K filed with the SEC on July 26, 2016, the Trust received written notice on July 25, 2016 that the Panel had determined to continue the listing of the Trust’s common shares on Nasdaq subject to the condition that, on or before September 12, 2016, the Trust evidences compliance with Nasdaq Listing Rule 5250(c)(1) by filing all necessary periodic reports with the SEC.

As disclosed in a Current Report on Form 8-K filed with the SEC on June 8, 2016, the Trust has engaged a new independent registered public accounting firm, and the audit process began immediately. After conversations with the new auditors regarding the expected filing date for the aforementioned periodic reports, the Trust notified the Panel that it would need additional time to file the periodic reports. Therefore, the Trust submitted a written request to the Panel for an extension of the September 12, 2016 filing deadline. As stated above, on September 14, 2016, the Panel granted an extension of the September 12, 2016 deadline to October 17, 2016. In the event the Trust is not able to file the periodic reports by October 17, 2016 or is not able to demonstrate that it satisfies all other quantitative and qualitative requirements for continued listing on Nasdaq, the Panel may issue a final determination to delist the Trust’s securities and suspend trading of the Trust’s securities on Nasdaq.

As disclosed in the Trust’s Current Report on Form 8-K filed with the SEC on February 22, 2016, trading in the Trust’s securities on Nasdaq has been halted. Trading in the Trust’s securities will remain halted at least until the Trust has become fully current in its periodic filing obligations with the SEC, and no assurance can be given regarding the resumption of regular trading of the Trust’s securities.