Company: NXDT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001356115-25-000003
Chunk: 232

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 232
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 and results of operations.

There are risks to the Company of the NHT Merger not being completed, including the costs to the Company incurred in pursuing the NHT Merger and the risks associated with the temporary diversion of NHT’s managements’ attention away from the operation of NHT. If the NHT Merger is not completed, the market price of NHT’s units may be materially adversely affected, impacting the value of our investment in NHT. NHT may terminate the merger agreement under certain limited circumstances, including if there is an order of any court or other governmental authority enjoining, prohibiting or rendering illegal the consummation of the NHT Merger, or if the Company breaches the merger agreement in such a way that the conditions precedent to closing the NHT Merger are incapable of being satisfied prior to the outside date contained in the merger agreement, May 22, 2025. In addition, to the extent the NHT Merger is not completed before the outside date contained in the merger agreement, May 22, 2025, either NHT or the Company would have the right to terminate the merger agreement. The completion of the NHT Merger is further subject to a number of conditions precedent, some of which are outside the control of the Company, including that the consents of certain third-parties be obtained prior to closing. There can be no assurance that such conditions will be satisfied or waived, and as such, the completion of the NHT Merger is uncertain.

Lawsuits challenging the NHT Merger may be filed against NHT and the Company, and an adverse judgment in any such lawsuit or any future similar lawsuits may prevent the NHT Merger from becoming effective or from becoming effective within the expected timeframe.

Interested parties may file lawsuits against NHT, the Company, affiliates and/or the trustees and officers of either entity in connection with the NHT Merger. One of the conditions to the closing of the NHT Merger is that no injunction or order of any court or other governmental authority of competent jurisdiction enjoining, prohibiting or rendering illegal the consummation of the NHT Merger or the other transactions contemplated by the merger agreement be in effect. If any plaintiff were successful in obtaining an injunction prohibiting the defendants from completing the NHT Merger on the agreed upon terms, then such injunction may prevent the NHT Merger from becoming effective or from becoming effective within the expected timeframe and could result in significant costs to the Company, including any cost associated with the 

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