Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 95

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 95
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 rely upon the exemption in Section 5.5 of MI 61-101, which provides that that an issuer is exempt from the formal valuation requirements if its securities are not listed on the Toronto Stock Exchange, the Aequitas NEO Exchange Inc., the New York Stock Exchange, the American Stock Exchange, the NASDAQ Stock Market, or a stock exchange outside of Canada and the United States other than the Alternative Investment market of the London Stock Exchange or the PLUS markets operated by PLUS Markets Group plc.

MI 61-101 requires that a business combination be subject to “minority approval” (as defined in MI 61-101) of every class of “affected securities” of the issuer, in each case voting separately as a class. As such, the Transaction Resolution will require the affirmative vote of at least a majority of the votes cast by the Unitholders, present in person or represented by proxy at the Meeting, excluding the votes attached to the Unitholders that are beneficially owned or over which control or direction is exercised by Mr. Dondero, and any “related party” of the REIT within the meaning of MI 61-101 (subject to the exceptions set out therein) and any person acting jointly or in concert with the foregoing in respect of the Transaction Resolution. The full text of the Transaction Resolution is set forth in Appendix D to this Information Circular.

For purposes of the minority approval requirements of MI 61-101, to the knowledge of the REIT after reasonable inquiry, the votes attached to 24,222,641 Units beneficially owned, directly or indirectly, or over which control or direction is exercised by Mr. Dondero, or his “related parties” or “joint actors” or “related parties” or “joint actors” of NXDT (as defined in MI 61-101) (such entities, the “Interested Unitholders”) of the REIT, representing, as of the Record Date, approximately 82.52% of the issued and outstanding Units, will be excluded in determining whether minority approval for the Transaction Resolution is obtained.

As of the Record Date, the Units to be excluded for the purposes of minority approval requirement are set out below:

| Unitholder                              |               Number of Units 
 Owned, Controlled or Directed | Percentage of Outstanding Units(2) |
| NexPoint Real Estate Opportunities, LLC |                    15,747,388 | 53.65%                             |
| The Dugaboy Investment Trust            |                     5,394,