Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 55

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 55
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 and provided a verbal opinion to the Special Committee (which was subsequently confirmed in writing) to the effect that, as of the date thereof and subject to the assumptions, limitations and qualifications described therein, the consideration to be received by Unitholders pursuant to the Merger Agreement was fair, from a financial point of view, to Unitholders.

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The Special Committee proceeded to review and consider in detail the terms of the transactions contemplated by the Merger Agreement. The Special Committee, after receiving the advice of Doane Grant Thornton and Goodmans, then unanimously passed a resolution: (a) determining that the transactions contemplated by the Merger Agreement were fair, from a financial point of view, to Unitholders and it was in the best interests of the REIT to enter into the Merger Agreement and for the Board to recommend that the Unitholders vote in FOR the Transaction Resolution; (b) approving the Merger Agreement; and (c) resolving to recommend that Unitholders vote FOR the Transaction Resolution.

Following the Special Committee meeting on November 22, 2024, the Board held a meeting to consider the Proposed Transaction. In attendance at the meeting were all of the Independent Trustees and Goodmans. The Special Committee reported to the Board, following which the Board (with Mr. Dondero declaring his interest in the Transaction and abstaining from voting) unanimously passed a resolution: (a) determining that the transactions contemplated by the Merger Agreement were fair, from a financial point of view, to Unitholders and in the best interests of the REIT and Unitholders; (b) approving the Merger Agreement; and (c) resolving to recommend that Unitholders vote FOR the Transaction Resolution.

Following the approval of the Board, the Parties entered into the Merger Agreement on November 22, 2024. The REIT and NXDT issued a joint news release announcing the entering into of the Merger Agreement and the transactions contemplated therein prior to the opening of trading on the TSXV on November 25, 2024.

| (i) | Information Considered |

In reaching its determination and in making its recommendations, the Special Committee considered and relied upon extensive information, advice and analysis obtained by it in the course of its process, including:

| ● | information concerning the business, operations, properties, assets, financial performance and condition, operating results and prospects of the REIT and its business, including the REIT’s most recent annual results; |

|