Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 22

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 22
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 entities owned or controlled, directly or indirectly, by NXDT.

Consideration to Unitholders in the Mergers

Upon the terms of the Merger Agreement, upon the consummation of the Company Merger, holders of the Units will have the right to receive a number of NXDT Common Shares, rounded to the nearest thousandth, equal to the quotient of $0.36 divided by the volume weighted average price of NXDT Common Shares quoted on the NYSE for the ten (10) trading days prior to Closing (the “Merger Consideration”). However, any Units held by NXDT, NXDT OP, or any of their respective subsidiaries, will be automatically retired and cease to exist, and no payment will be made with respect thereto.

The market prices of the Units and NXDT Common Shares fluctuate. As a result, we urge you to obtain current market quotations of the Units and NXDT Common Shares.

Consideration to Holders of NHT OP Units

Upon the terms of the Merger Agreement, upon the consummation of the Operating Partnership Merger, holders of the NHT OP Units will have the right to receive a number of limited partnership interests of NXDT OP, rounded to the nearest thousandth, equal to the quotient of $0.36 divided by the volume weighted average price of NXDT Common Shares quoted on the NYSE for the ten (10) trading days prior to Closing (the “Operating Partnership Merger Consideration”). However, any NHT OP Units held by NXDT, NXDT Intermediary, or any of their respective subsidiaries, will be automatically retired and cease to exist, and no payment will be made with respect thereto.

Treatment of Equity-Based Awards

At the Reorganization Effective Time, each Deferred Unit will be cancelled and holders of such cancelled Deferred Units will be entitled to receive $0.36 in cash per Deferred Unit at Closing.

At the Operating Partnership Merger Effective Time, each Vested NHT OP Profits Interest Unit will automatically be cancelled and converted into the right to receive Vested NXDT OP Profits Interest Units at the Operating Partnership Exchange Ratio, and each Unvested NHT OP Profits Interest Unit will automatically be converted into the right to receive Unvested NXDT OP Profits Interest Units with like vesting conditions at the Operating Partnership Exchange Ratio.

Treatment of NHT OP Units to be Issued Upon Conversion of Convertible Promissory Notes

At the Operating Partnership Merger Effective Time, all rights to receive NHT