Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 56

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 56
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 ● | information concerning the REIT’s business plan, the plan’s assumptions regarding operations, strategy and value and the risks and uncertainties inherent therein, and the REIT’s anticipated financial performance under the status quo alternative and recent changes in the industry; |

| ● | the impact of the REIT’s high leverage level and the REIT’s capital expenditure needs; |

| ● | the impact and status of general industry, regulatory, economic and market conditions and trends relevant to the REIT’s businesses; |

| ● | the effect of NXDT’s control position in respect of the REIT; |

| ● | the terms of the legal documentation for the Proposed Transaction and how they compared to the terms of similar transactions in the North American marketplace; |

| ● | the lack of liquidity in the REIT’s Units on the TSXV; |

| ● | advice provided by the Special Committee’s legal and financial advisors relating to the relative benefits and risks associated with the Transaction; and |

| ● | the information, analysis, assumptions, qualifications and limitations relied on by Doane Grant Thornton in conducting its financial analysis and the Fairness Opinion. |

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| (ii) | Role of Management |

Certain information and analysis received and relied upon by the Special Committee and its advisors was prepared by Management. In light of Management’s potential or perceived conflict of interest, the Special Committee and its legal and financial advisors carefully scrutinized and analyzed such information and analysis (and the underlying assumptions) in conducting their own analysis and reaching their own conclusions.

| (iii) | Benefits of the Transaction |

In reaching its determination and making its recommendations, the Special Committee considered a number of substantive benefits associated with the Transaction, including the following material benefits (which are not intended to be exhaustive):

| 1. | There is no cap on the cash payable under the Transaction so Unitholders electing cash will not be subject to pro-ration. |

| 2. | The proposed price of $0.36 per Unit represents a premium of approximately 2300% to the 30-day volume weighted average price per Unit on the TSXV ended November 22, 2024 of $0.015. |

| 3. | The Transaction provides Unitholders with the option to elect to receive per Unit $0.36 in cash or one (1) New NHT Share, which will subsequently be converted into the right to receive a number of NXDT Common Shares, rounded to the nearest thousandth,