Company: NXDT
Filing Date: 2025-04-11
Form Type: S-4
Source: 0001437749-25-011826
Chunk: 24

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-11
Form: S-4
Chunk 24
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 NXDT’s board of directors does not grant an exemption from the ownership limits, even if New NXDT’s stockholders believe the change in control is in their best interest. It is expected that New NXDT’s board of directors will grant a waiver from the ownership limits applicable to holders of New Common Stock to James Dondero and certain of his affiliates and may grant additional waivers in the future. Our Board previously granted James Dondero and certain of his affiliates such a wavier with respect to Old Common Shares of Old NXDT. These waivers will be subject to certain initial and ongoing conditions designed to protect New NXDT’s status as a REIT. |

| ● | New NXDT’s Board of Directors Has the Power to Cause New NXDT to Issue Additional Shares of New NXDT’s Stock without Stockholder Approval. The New NXDT Charter authorizes New NXDT to issue additional authorized but unissued shares of common or preferred stock. In addition, New NXDT’s board of directors may, without stockholder approval, amend the New NXDT Charter to increase the aggregate number of shares of New NXDT Common Stock or the number of shares of stock of any class or series that New NXDT has authority to issue and classify or reclassify any unissued shares of common or preferred stock and set the preferences, rights and other terms of the classified or reclassified shares. As a result, New NXDT’s board of directors may establish a series of shares of common or preferred stock that could delay or prevent a transaction or a change in control that might involve a premium price for shares of New NXDT Common Stock or otherwise be in the best interest of New NXDT’s stockholders. |

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Certain provisions of Maryland law may limit the ability of a third party to acquire control of New NXDT.

Certain provisions of the MGCL may have the effect of inhibiting a third party from acquiring New NXDT or of impeding a change of control under circumstances that otherwise could provide New NXDT’s common stockholders with the opportunity to realize a premium over the then-prevailing market price of such shares, including:

| ● | “control share” provisions that provide that holders of “control shares” of New NXDT (defined as voting shares of stock that, if aggregated with all other shares of stock owned or controlled by the acquirer, would entitle the acquirer to exercise one of three increasing ranges of voting power in electing directors) acquired in a “control share acquisition” (defined as the