Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 78

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 78
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icial ownership of shares of our common stock or preferred stock, or collectively, capital stock, in excess of 9.8%, in number of
shares or value, of the outstanding shares of the related class of capital stock. For this purpose, the term “beneficial ownership”
means beneficial ownership of capital stock by a person, either directly or constructively, including through application of the constructive
ownership provisions of Section 544 of the Code and related provisions.

Under the constructive ownership
rules of Section 544 of the Code, a holder of a warrant generally will be treated as owning the number of shares of capital
stock into which such warrant may be converted. In addition, the constructive ownership rules generally attribute ownership of securities
owned by a corporation, partnership, estate, or trust proportionately to its stockholders, partners, or beneficiaries, respectively.
The rules may also attribute ownership of securities owned by family members to other members of the same family and may treat an
option to purchase securities as actual ownership of the underlying securities by the optionholder. The rules further provide when
securities constructively owned by a person will be considered to be actually owned for the further application of such attribution provisions.
To determine whether a person holds or would hold capital stock in excess of the 9.8% ownership limit, a person will be treated as owning
not only shares of capital stock actually owned, but also any shares of capital stock attributed to that person under the attribution
rules described above. Accordingly, a person who directly owns less than 9.8% of the shares outstanding may nevertheless be in violation
of the 9.8% ownership limit.

Any acquisition or transfer
of shares of capital stock or warrants that would cause us to be disqualified as a REIT or that would create a direct or constructive
ownership of shares of capital stock in excess of the 9.8% ownership limit, or result in the shares of capital stock being beneficially
owned, within the meaning of Section 856(a) of the Code, by fewer than 100 persons, determined without any reference to any
rules of attribution, or result in our being closely held within the meaning of Section 856(h) of the Code, will be null
and void, and the intended transferee will acquire no rights to those shares or warrants. These restrictions on transferability and ownership
will not apply if our board of directors determines that it is no longer in our best interests to continue to qualify as a REIT.

If any purported transfer