Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 24

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 24
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, waived. These conditions include, among others, the approval of the Transaction Resolution by the Unitholders, the absence of any legal prohibitions, injunctions or other restraints prohibiting the consummation of the Mergers, delivery of certain tax opinions and officer certificates, the accuracy of each of the parties’ representations and warranties, compliance with the parties’ respective obligations under the Merger Agreement, the consent of certain third parties, the termination of certain of NHT’s contracts, the consummation of the Reorganization, the joinder of New NHT as a party to the Merger Agreement and the absence of a material adverse effect on either party.

Neither NHT nor NXDT can be certain when, or if, the conditions to the completion of the Mergers will be satisfied or waived, or that the Mergers will be effected.

No Solicitation

The Merger Agreement contains a customary “no shop” provision that generally requires NHT to refrain from, and to cease discussions with respect to, alternate acquisition transactions and subjects NHT to certain restrictions in considering and negotiating alternate acquisition transactions. If NHT receives an unsolicited bona fide acquisition proposal and if the Board determines in good faith, after consultation with its independent financial advisors and outside legal counsel, that such acquisition proposal constitutes or would reasonably be expected to lead to a superior proposal, NHT may provide non-public information to the proposing party and engage in discussions or negotiations with the party making such a proposal. NHT is required to promptly notify NXDT of any proposal for an alternative acquisition transactions within 24 hours.

Permitted Change in Recommendation

In response to an unsolicited bona fide written acquisition proposal that constitutes or is reasonably expected to lead to a superior proposal, the Board may make an Adverse Recommendation Change. Prior to effecting an Adverse Recommendation Change, the Board must provide NXDT with notice, reasons for such action, and five business days of negotiations to counter such proposal. Following such notice period, the Board must determine, after consulting with its outside legal counsel and financial advisors, taking into account any changes to the Merger Agreement proposed by NXDT that the superior proposal continues to constitute a superior proposal in order to effect an Adverse Recommendation Change. NXDT may terminate the Merger Agreement upon Adverse Recommendation Change, but absent such termination, NHT will still be required to hold the annual and special meeting as set forth in this Information Circular.

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Additionally, if an intervening event occurs with respect