Company: NXDT
Filing Date: 2025-04-23
Form Type: S-4/A
Source: 0001437749-25-012810
Chunk: 207

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-23
Form: S-4/A
Chunk 207
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 organization, a statutory stock exchange by New NXDT or a sale, lease, transfer or conveyance of all or substantially all of New NXDT’s property or business will not be deemed to constitute a liquidation, dissolution, termination, cancellation or winding-up of New NXDT’s affairs.

Conversion at Option of Holders

Shares of the New Series B Preferred Stock will be convertible at the option of the holder thereof into New Common Stock beginning on the first day of the month following the third anniversary of the Original Issue Date of the shares to be converted if the 5-day volume weighted average price (“VWAP”) of the New Common Stock on the NYSE ending on the trading day immediately preceding the date the holder delivers a duly completed conversion notice to New NXDT (such 5-day VWAP, the “Market Price”) represents a 15.0% premium to the Applicable NAV (as defined below) (the “Minimum Market Price Trigger”).

As used herein, the “Applicable NAV” means the estimated fair market net asset value (“NAV”) of New NXDT per share of New Common Stock as most recently published by New NXDT at the time of issuance of the applicable share of New Series B Preferred Stock. New NXDT intends to determine NAV on a quarterly basis. New NXDT’s determination of the Applicable NAV is final and binding. Applicable NAV is subject to adjustments for any stock splits (including those effected pursuant to a distribution of New Common Stock), subdivisions or combinations with respect to New Common Stock (in each case, a “Stock Split”), with respect to New Common Stock as follows: the adjusted Applicable NAV as the result of any Stock Split will be equal to the product obtained by multiplying (i) the Applicable NAV in effect immediately prior to such Stock Split by (ii) a fraction, the numerator of which is the number of shares of New Common Stock outstanding after giving effect to such Stock Split and the denominator of which is the number of shares of New Common Stock outstanding immediately prior to such Stock Split.

The per share conversion rate will be as follows:

| • | Beginning on the first day of the month following the third anniversary of the Original Issue Date of the shares to be converted: 94% of the Market Price |

| • | Beginning on the first day of the month following the fourth anniversary of the Original Issue Date of the shares to be converted: 90% of the Market Price |

| • | Beginning on the first day of the month following the fifth anniversary of the Original