Company: NXDT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001356115-25-000003
Chunk: 610

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 610
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 judgment in any such lawsuit or any future similar lawsuits may prevent the NHT Merger from becoming effective or from becoming effective within the expected timeframe.

Interested parties may file lawsuits against NHT, the Company, affiliates and/or the trustees and officers of either entity in connection with the NHT Merger. One of the conditions to the closing of the NHT Merger 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 NHT Merger or the other transactions contemplated by the merger agreement be in effect. If any plaintiff were successful in obtaining an injunction prohibiting the defendants from completing the NHT Merger on the agreed upon terms, then such injunction may prevent the NHT Merger from becoming effective or from becoming effective within the expected timeframe and could result in significant costs to the Company, including any cost associated with the 

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indemnification of trustees and officers. The defense or settlement of any lawsuit or claim that remains unresolved at the time the NHT Merger is completed may adversely affect the Company’s business and results of operations.

Following the consummation of the NHT Merger, the Company may be unable to integrate the operations of the Company and NHT successfully and realize the anticipated synergies and other benefits of the NHT Merger or do so within the anticipated time frame.

The NHT Merger involves the acquisition of a company that currently operates as a public company in Canada. The Company is expected to benefit from the elimination of duplicative costs associated with supporting a public company platform and from the greater efficiency of having a single management team and investment adviser. However, the Company will be required to devote management attention and resources to integrating the operations of NHT and the Company. Potential difficulties the Company may encounter in the integration process include the following:

•the inability to successfully combine the operations of the Company and NHT, including the integration of personnel, customer records and maintaining cybersecurity protections, in a manner that permits the Company to achieve the cost savings anticipated to result from the NHT Merger;

•the inability to dispose of assets or operations that the Company desires to dispose of;

•the complexity of integrating personnel;

•potential unknown liabilities and unforeseen increased expenses, delays or regulatory conditions associated with the NHT Merger; and

•the diversion of management’s attention caused by completing the NHT Merger and integrating NHT’s operations.

For all these reasons, it is possible that the integration process could result in the distraction of the