Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 60

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 60
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 their determinations and recommendations, and individual members of the Special Committee may have given different weights to different factors. The above factors are not presented in any order of priority.

After careful consideration, the NXDT Board unanimously authorized and approved the Merger Agreement and the transactions contemplated thereby on November 22, 2024. The Mergers will allow NXDT to acquire the outstanding interests in NHT which it does not already own. Currently, NXDT owns approximately 53.65% of NHT’s Units and consolidates NHT on its financial statements. A number of beliefs and factors were considered in the decision by NXDT to undertake the Transaction, including the following material factors:

| ● | The belief that full ownership of NHT would maximize the value of the combined business and promote efficiencies by having a single management team and investment adviser; |

| ● | The belief that it would be more advantageous for NXDT to operate NHT’s assets as part of a wholly owned subsidiary rather than a majority owned public company, due to increased operating flexibility that wholly-owned subsidiary status would provide; |

| ● | NXDT’s familiarity with the business, operations, properties, assets, financial condition, business strategy and prospects of NHT, the nature of the real estate industry in general, industry trends, the regulatory and legislative environment relevant to the industries in which NXDT and NHT operate, and global economic and market conditions, both on a historical and on a prospective basis; |

| ● | The Merger Consideration will be paid in NXDT Common Shares, and any cash payments for Redemptions will be made by NHT; |

| ● | The Merger Agreement provides that NHT will pay a $370,000 termination fee if the Merger Agreement is terminated under certain circumstances; and |

| ● | The Merger Agreement contains a “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. |

The foregoing discussion is not intended to be an exhaustive list of the information and factors considered by NXDT in its consideration of the Transaction, but includes certain material factors considered by NXDT. In view of the wide variety of factors considered in connection with the Transaction, and the complexity of these matters, NXDT did not consider it practical to, and did not attempt to, quantify, rank or otherwise assign any relative or specific weights or values to the different factors considered and individuals may have given different weights