Company: NXDT
Filing Date: 2025-04-23
Form Type: S-4/A
Source: 0001437749-25-012810
Chunk: 189

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-23
Form: S-4/A
Chunk 189
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 disposition of shares of New Stock.

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DESCRIPTION OF NEW NXDT’S CAPITAL STOCK</div>

The following description summarizes the material provisions of the New Stock. While we believe the following description covers the material provisions of our capital stock, the description may not contain all of the information that is important to you. We encourage you to read carefully this entire proxy statement/prospectus, the New NXDT Charter and New NXDT Bylaws and the other documents we refer to for a more complete understanding of the New Stock following the Conversion. This description is not complete and is subject to, and is qualified in its entirety by reference to the New NXDT Charter and New NXDT Bylaws and applicable provisions of the MGCL.

Authorized Stock

New NXDT’s authorized stock consists of 500,000,000 shares of common stock, par value $0.001 per share, and 100,000,000 shares of preferred stock, par value $0.001 per share, 4,800,000 shares of which are classified and designated as New Series A Preferred Stock and 16,000,000 shares of which are classified and designated as the New Series B Preferred Stock. As of immediately following the Conversion, we anticipate that 44,517,013.24 shares of New Common Stock will be issued and outstanding, 3,359,593 shares of New Series A Preferred Stock will be issued and outstanding and 12,900 shares of New Series B Preferred Stock will be issued and outstanding (subject to further shares being issued pursuant to sales in the ongoing continuous offering of Old Series B Preferred Shares prior to the Conversion). We anticipate that the outstanding shares of New Stock immediately after the Conversion will be fully paid and nonassessable. Under the MGCL, New NXDT’s stockholders generally are not liable for our debts or obligations solely as a result of their status as stockholders.

New NXDT’s board of directors may, without stockholder approval, amend the New NXDT Charter from time to time to increase or decrease the number of authorized shares of stock or the number of authorized shares of stock of any class or series.

New Common Stock

Dividends

Subject to the preferential rights, if any, of holders of any other class or series of New Stock and the provisions of New NXDT Charter that restrict transfer and ownership of New Stock, the holders of shares of New Common Stock generally will be entitled to receive dividends and other distributions on such shares of stock when, as and if authorized by