Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 100

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 100
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, 2025. After a Unitholder has submitted a Letter of Transmittal and Election, under the terms of the election, he or she will not be able to transfer any Units covered by his or her form of election, unless he or she revokes his or her election by written notice received by the Depositary prior to the election deadline. Any subsequent transfer of Units with respect to which an election has been made shall automatically revoke such election. If the Meeting is delayed to a subsequent date, the election deadline shall be similarly delayed to a subsequent date, and the REIT shall promptly announce any such delay and, when determined, the rescheduled election deadline.

Lawsuits challenging the Transaction may be filed against the REIT and NXDT, and an adverse judgment in any such lawsuit or any future similar lawsuits may prevent the Transaction from becoming effective or from becoming effective within the expected timeframe.

Interested parties may file lawsuits against the REIT, NXDT, affiliates and/or the directors and officers of either entity in connection with the Transaction. One of the conditions to the closing of the Transaction is that no injunction or order of any court or other governmental authority of competent jurisdiction enjoining, prohibiting or rendering illegal the consummation of the Mergers or the Reorganization or the transactions contemplated by the Merger Agreement be in effect. If any plaintiff were successful in obtaining an injunction prohibiting the defendants from completing the Transaction on the agreed upon terms, then such injunction may prevent the Transaction from becoming effective or from becoming effective within the expected timeframe and could result in significant costs to the REIT and/or NXDT, including any cost associated with the indemnification of trustees and officers. The defense or settlement of any lawsuit or claim that remains unresolved at the time the Transaction are completed may adversely affect the REIT’s or NXDT’s business, financial condition, results of operations and cash flow.

The REIT’s trustees and executive officers have interests in the Transaction that may be different from, or in addition to, the interests of Unitholders generally.

In considering the recommendation of the Board that Unitholders approve the Transaction Resolution, Unitholders should be aware and take into account the fact that certain trustees and executive officers of the REIT have interests in the Transaction that may be different from, or in addition to, the interests of Unitholders generally and that may create potential conflicts of interest. The Board was aware of and considered these interests, among other matters, in evaluating the terms and structure, and overseeing the negotiation of, the Transaction, in