Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 101

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 101
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 approving the Merger Agreement and in recommending that Unitholders approve Transaction Resolution. The Board established a Special Committee comprised solely of independent trustees and empowered the Special Committee, on behalf of, and acting solely in the interests of the holders of Units (other than NXDT), to investigate, review, evaluate, negotiate the terms and conditions of, and determine the fairness of, the Transaction and to recommend to the Board what action, if any, should be taken with respect to the Transaction.

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The Fairness Opinion received by the Special Committee from its financial advisor prior to the execution of the Merger Agreement does not reflect changes, circumstances, developments or events that may have occurred or may occur after the date of the opinion.

Doane Grant Thornton, the independent valuator retained by the Special Committee in connection with the Transaction, delivered to the Special Committee the Fairness Opinion stating that, based upon and subject to the assumptions made, procedures followed, matters considered and other qualifications and limitations set forth therein, as of November 22, 2024, the consideration to be paid to the Unitholders pursuant to the Transaction was fair, from a financial point of view, to such Unitholders.

The Fairness Opinion of Doane Grant Thornton does not reflect changes, circumstances, developments or events that may have occurred or may occur after the date of the opinion, including changes in the operations and prospects of the REIT or legal changes, general market and economic conditions and other factors that may be beyond the control of the REIT and that may alter the value of the REIT or the price of the Units at the effective time of the Transaction. The Fairness Opinion does not speak as of the time the Transaction will be completed or as of any date other than the dates of such opinion. Doane Grant Thornton does not have an obligation or responsibility to update, revise or reaffirm its opinions based on circumstances, developments or events that may have occurred or may occur after the date of the opinion. The opinion of Doane Grant Thornton is attached as Appendix E to this Information Circular.

The Transaction may result in Tax payable by Unitholders

While it is expected that, for U.S. federal income tax purposes, the Restructuring (as defined in “Certain U.S. Federal Income Tax Considerations”) and Company Merger will each qualify as a “reorganization” under Section 368 of the Code, the Transaction may nonetheless (and any Redemption is expected to) be a taxable transaction and, to the