Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 52

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 52
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 assist the Board in (i) evaluating and responding to the Proposed Transaction and (ii) considering all such alternative transactions reasonably available to the REIT, such as a recapitalization of the REIT, a strategic alliance with a third party, or an alternative acquisition by a third party.

Over the course of the next few days, the Special Committee contacted Doane Grant Thornton LLP (“Doane Grant Thornton”) about the possibility of acting as independent financial advisor to the Special Committee. On September 17, 2024, the Special Committee and Goodmans met with Doane Grant Thornton to provide additional information in respect of the Proposed Transaction. Doane Grant Thornton confirmed its independence with reference to relevant regulatory requirements, including MI 61-101, and demonstrated that they had the requisite experience, qualifications and capacity for the engagement. On September 18, 2024, Doane Grant Thornton provided the Special Committee with a proposal for the fairness opinion, which included an estimated fee range and anticipated work streams.

After careful deliberation among the members of the Special Committee, including with counsel, the Special Committee resolved to retain Doane Grant Thornton as independent financial advisor and resolved that Doane Grant Thornton’s compensation should not be contingent on the completion of the Proposed Transaction and should be paid regardless of Doane Grant Thornton’s conclusions. On September 26, 2024, the Special Committee entered into an engagement letter with Doane Grant Thornton to formally retain Doane Grant Thornton to deliver the fairness opinion in respect of the Proposed Transaction (the “Fairness Opinion”).

On September 24, 2024, NXDT circulated a due diligence request list in respect of the Proposed Transaction. Over the next few weeks and up until the signing of the Merger Agreement, NXDT engaged in financial, legal and operational due diligence of the REIT and its subsidiaries, with Management and Goodmans working to facilitate this review by providing relevant materials and responding to informational requests from NXDT.

On October 1, 2024, the Special Committee met with Goodmans, Management and Doane Grant Thornton to discuss Doane Grant Thornton’s mandate, as well as the timeline and steps for the Proposed Transaction. Goodmans provided an overview of the proposed timeline for the Proposed Transaction. Goodmans also highlighted the key work streams for the Proposed Transaction and updated the Special Committee on the status of those work streams. Following the timeline discussion, members of Doane Grant Thornton reviewed the process expected to be followed by Doane Grant Thornton in evaluating the Proposed Transaction and determining whether the Proposed Transaction is