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

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 25
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 to NHT, and the Board concludes in good faith (after consultation with its outside legal counsel) that failure to take such action would reasonably be expected to be inconsistent with their duties under applicable law, then NHT 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 obviate the need to make such an Adverse Recommendation Change. 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 failure to make an Adverse Recommendation Change would be reasonably expected to be inconsistent with the Board’s duties under applicable law 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. Dissenters Rights of Appraisal The Registered Holders will be granted the right to dissent in respect of the Transaction and be paid the fair value of their Units. For additional information, see “ Approval of Transaction Resolution– Rights of Dissent.” Tax Considerations of the Transaction For U.S. federal income tax purposes, NXDT and NHT intend that the Mergers will qualify as a “reorganization” within the meaning of Section 368(a) of the Code. For additional information of certain U.S. federal income tax consequences of the Mergers and the ownership of NXDT Common Shares, see “ Material U.S. Federal Tax Consequences.” The Reorganization and the Mergers will be taxable transactions for Canadian federal income tax purposes. For additional information on Canadian income tax consequences of the Reorganization and the Mergers, see “ Material Canadian Tax Consequences.” Comparative Stock Prices The NXDT Common Shares are currently listed for trading on the NYSE under the trading symbol “NXDT.” The Units are currently listed for trading on the TSXV under the trading symbol “NHT.U.” On November 22, 2024, the most recent day before the announcement of the Transaction, the closing price per NXDT Common Share was $5.47, and the closing price per Unit was $0.015. You should obtain a current price quotation for the NXDT Common Shares and Units. The following tables set forth the high and low sales prices of NXDT Common Shares and the Units as