Company: NXDT
Filing Date: 2025-04-23
Form Type: S-4/A
Source: 0001437749-25-012810
Chunk: 223

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-23
Form: S-4/A
Chunk 223
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 Additional Shares of Common and Preferred Stock

The New NXDT Charter authorizes the board of directors, with the approval of a majority of the board of directors and without stockholder approval, to amend the New NXDT Charter to increase or decrease the aggregate number of shares of stock or the number of shares of any class or series of stock that New NXDT is authorized to issue. In addition, the New NXDT Charter authorizes the board of directors to authorize the issuance from time to time of shares of New Common Stock and New Preferred Stock.

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The New NXDT Charter also authorizes the board of directors to classify and reclassify any unissued shares of New Common Stock and New Preferred Stock into other classes or series of stock, including one or more classes or series of stock that have priority over New Common Stock with respect to voting rights, distributions or upon liquidation, and authorize us to issue the newly classified shares. Prior to the issuance of shares of each new class or series, the board of directors is required by the MGCL and by the New NXDT Charter to set, subject to the provisions of the New NXDT Charter regarding the restrictions on ownership and transfer of New NXDT’s stock, the preferences, conversion and other rights, voting powers, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption for each class or series. Therefore, the board of directors could authorize the issuance of shares of common or preferred stock with terms and conditions that could have the effect of delaying, deferring or preventing a change in control or other transaction that might involve a premium price for shares of the New Common Stock or otherwise be in the best interest of New NXDT’s stockholders.

We believe that the power of the board of directors to approve amendments to our charter to increase or decrease the number of authorized shares of stock, to authorize us to issue additional authorized but unissued shares of common or preferred stock and to classify or reclassify unissued shares of common or preferred stock and thereafter to authorize New NXDT to issue such classified or reclassified shares of stock will provide New NXDT with increased flexibility in structuring possible future financings and acquisitions and in meeting other needs that might arise.

Restrictions on Ownership and Transfer

In order for New NXDT to qualify as a REIT under the Code, shares of New NXDT’s stock must be owned by 100 or more persons during at least 335 days of a taxable year of 12 months (other than the first year for which an