Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 45

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 45
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” under TSXV Policy 4.1 – Private Placements. Due to this determination, the TSXV required the following amendments to the CDOR Loans: (i) either the conversion feature be removed or limited to five years from the date of issuance of the CDOR Loan; (ii) the conversion feature be limited to the principal amount of the CDOR Loan (rather than the principal amount including interest); and (iii) the conversion price be fixed at a price equal to the market price of the REIT’s Units on the TSXV at the time of the issuance of the CDOR Loan. Following discussions with NFRO, it was determined that the conversion right under the CDOR Loans would be removed entirely (the “CDOR Amendment”).

The Board, having undertaken a thorough review of, and having: (i) considered the terms of the CDOR Amendment to the CDOR Loans; (ii) considered the need to comply with the requirements of the TSXV in order to maintain a listing for the Units, and (iii) consulted with its legal advisors, concluded that the CDOR Amendment is in the best interests of the REIT and agreed to pursue the approval of the CDOR Amendment. The REIT has obtained the requisite approval from NFRO to implement the CDOR Amendment. However, as the CDOR Amendment constitutes a “related party transaction” under MI 61-101, the REIT must receive “minority approval” of the CDOR Amendment under MI 61-101, as more particularly described below. If the CDOR Amendment is not approved at the Meeting, the REIT will engage with the TSXV to seek alternative solutions to the satisfy the TSXV listing requirements; however, there can be no assurance that a satisfactory solution will be found, and if a solution is not found, the TSXV may halt trading in the Units, suspend trading in the Units and/or initiate a delisting review of the REIT’s Units as, absent the CDOR Amendment, the REIT would not be in compliance with TSXV listing requirements.

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The REIT is a reporting issuer in certain of the provinces of Canada and, accordingly, is subject to applicable securities laws of such provinces, including MI 61-101. MI 61-101 is intended to regulate certain transactions which raise the potential for conflicts of interest, including related party transactions, to ensure that all securityholders of an issuer are treated in a manner that is