Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 59

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 59
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 after consultation with its advisors, reasonable and can be achieved within an expedited timeframe, with closing of the Transaction currently expected in the first quarter of 2025. See “The Merger Agreement”. |

| 5. | Unitholders have been provided with the right to exercise dissent rights and to be paid fair value for their Units. |

| (v) | Risks and Potentially Negative Factors |

The Special Committee also considered a number of risks and potentially negative factors concerning the Transaction, including the following:

| 1. | There can be no certainty that all conditions to the Transaction will be satisfied. NXDT has the right to terminate the Transaction under certain limited circumstances. The failure to complete the Transaction could negatively impact the price of the Units or otherwise adversely affect the business of the REIT. |

| 2. | Under the Merger Agreement, the REIT must generally conduct its business in the ordinary course, and the REIT is, prior to the completion of the Transaction or the termination of the Merger Agreement, subject to ordinary course of business covenants requiring the prior consent of NXDT to carry out certain actions, which may delay or prevent the REIT from pursuing business opportunities that may arise or preclude actions that would otherwise be advisable if the REIT were to remain a publicly traded issuer. |

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| 3. | The Transaction will result in the REIT no longer existing as a publicly-traded issuer and as such, Unitholders who elect to receive cash will not benefit from any appreciation in the value of, or distributions on, their Units after the completion of the Transaction. |

| 4. | The consideration for the Transaction will be paid in U.S. dollars, which may result in certain Unitholders assuming currency-related risk. |

| 5. | Each of the REIT and NXDT has the right, in certain circumstances, in addition to termination rights relating to the failure to satisfy the conditions precedent, to terminate the Merger Agreement. Accordingly, there can be no certainty, nor can the REIT provide any assurance, that the Merger Agreement will not be terminated by either of the REIT or NXDT prior to the completion of the Transaction. |

The foregoing factors are not intended to be exhaustive, but include the material factors considered by the Special Committee in making its determinations and recommendations. The Special Committee did not consider it practicable to, and did not, assign specific weights to any of the factors considered in reaching