Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 98

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 98
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 current and future operations, financial conditions and prospects of the REIT. If the Transaction is not consummated and the Board decides to seek an alternative transaction, there can be no assurance that the REIT will be able to find a party willing to pay an equivalent or more attractive price than the consideration to be paid under the Transaction.

The Transaction is subject to the approval of the Transaction Resolution by Unitholders. Failure to obtain this approval would prevent completion of the Transaction

Before the Transaction can be completed, Unitholders must consider and, if deemed advisable, approve the Transaction Resolution. There can be no assurance that the Requisite Vote will be obtained. Failure to obtain the Requisite Vote may result in a material delay in, or the abandonment of, the Transaction. Any delay in completing the Transaction may materially adversely affect the timing and amount of benefits that are expected to be achieved from the Transaction.

Conditions precedent to Closing of the Transaction may not be completed

The completion of the Transaction is subject to a number of conditions precedent, some of which are outside of the REIT’s and NXDT’s control, including, without limitation, the approval of the Transaction Resolution, there being no applicable law in effect that makes the Mergers illegal or otherwise restricts or prohibits the consummation of the Reorganization or the Mergers. In addition, completion of the Transaction by NXDT is conditional on, among other things, there having not occurred any Company Material Adverse Effect, the receipt by NXDT of a written opinion of Winston & Strawn LLP regarding tax compliance and qualification of the REIT as a “real estate investment trust” under the Code and the receipt of evidence that all required consents have been obtained. There can be no certainty, nor can the REIT or NXDT provide any assurance, that all conditions precedent to the Transaction will be satisfied or waived, or, if satisfied or waived, when they will be satisfied or waived, and as such, completion of the Transaction is uncertain. See “The Merger Agreement – Closing Conditions”.

Termination of the Merger Agreement

Each of the REIT and NXDT has the right, in certain circumstances, in addition to termination rights relating to the failure to satisfy the conditions precedent, to terminate the Merger Agreement. Accordingly, there can be no certainty, nor can the REIT provide any assurance, that the Merger Agreement will not be terminated by either of the REIT or NXDT prior to the completion of the Transaction. Further, if the Merger Agreement is terminated