Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 23

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 23
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 OP Units pursuant to the conversion of the Convertible Promissory Notes shall be converted into the right to receive membership interests of NXDT Merger Sub pursuant to the terms of amendments to such Convertible Promissory Notes to be entered into a the Operating Partnership Effective Time, with the number of membership interests in NXDT Merger Sub to be issued under a Convertible Promissory Note to be equivalent to the number of NHT OP Units subject to the conversion rights under such Convertible Promissory Note, multiplied by the Operating Partnership Exchange Ratio, subject to the conditions to the exercise of such rights contained in the Convertible Promissory Notes.

Recommendations of the Board

After careful consideration with the assistance of its financial and legal advisors and after reviewing the Fairness Opinion (as defined herein), the Board, on November 22, 2024, with Mr. Dondero declaring his interest in the Transaction and abstaining from voting, unanimously authorized and approved the execution, delivery and performance of the Merger Agreement and the transactions contemplated thereby, are advisable and in the best interest of NHT and the Unitholders, directed that the Transaction Resolution be submitted to a vote of the Unitholders and resolved to recommend that the Unitholders vote in favor of the approval of the Transaction.

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Regulatory Approvals

In connection with the issuance of the NXDT Common Shares in the Mergers, pursuant to the Merger Agreement, as a condition to the closing of the Mergers, NXDT must file a registration with the SEC under the Securities Act, of which this Information Circular forms a part, that is declared effective by the SEC.

Closing; Effective Time of the Mergers

NHT and NXDT are working to complete the Mergers in the first quarter of 2025. However, the Mergers are subject to various conditions, and it is possible that factors outside the control of NHT and NXDT could result in the Mergers being completed at a later time, or not at all. There may be a substantial amount of time between the annual and special meeting and the completion of the Mergers. NHT and NXDT plan to complete the Mergers as soon as reasonably practicable following the satisfaction of all applicable conditions.

Conditions to Completion of the Mergers

As more fully described herein and in the Merger Agreement, the completion of the Mergers depends on a number of conditions being satisfied or, where legally permissible