Company: NXDT
Filing Date: 2025-04-25
Form Type: 424B3
Source: 0001437749-25-013177
Chunk: 204

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-25
Form: 424B3
Chunk 204
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 B Preferred Stock, plus all accrued but unpaid cash dividends thereon, if any, to but not including the date of conversion, divided by (ii) the applicable per share conversion rate. The number of shares of New Common Stock issuable to a holder of shares of New Series B Preferred Stock upon conversion will be determined based on the per share conversion rate in effect as of the date the holder delivers a duly completed conversion notice to New NXDT. The conversion date for shares to be converted at the option of a holder will be a date selected by New NXDT in its discretion that is within 45 days of the date New NXDT receives a conversion notice from the holder.

No conversions of New Series B Preferred Stock into New Common Stock will be made at such time as (i) it is prohibited by law, (ii) the terms and provisions of any agreement to which we are a party prohibits such conversion or provides that such conversion would constitute a breach thereof or a default thereunder, or (iii) if such conversion would result in a Change of Control (as defined in the New NXDT Charter).

Prior to the receipt of the Requisite Stockholder Approval (as defined below), shares of the New Series B Preferred Stock are not convertible, in aggregate, into more than 19.99% of the number of shares of New Common Stock or voting power outstanding prior to the initial issuance of any share of New Series B Preferred Stock (subject to appropriate adjustment in relation to any recapitalizations, stock dividends, stock splits, stock combinations, reclassifications or other similar events). As used herein, the “Requisite Stockholder Approval” means the approval of New NXDT’s stockholders as may be required under New NXDT’s governing documents, law and/or the listing standards of the NYSE (or any successor thereto or any trading market on which the New Common Stock is listed), including Rule 312.03 of the NYSE Listed Company Manual.

In addition, aggregate conversions by holders of the New Series B Preferred Stock will be subject to the following conversion limits: (i) no more than 5% of the outstanding New Series B Preferred Stock will be converted per calendar month; (ii) no more than 12% of the outstanding New Series B Preferred Stock will be converted per fiscal quarter; and (iii) no more than 33% of the outstanding New Series B Preferred Stock will be converted per fiscal year.

If, after applying these conversion limits, a holder would own less than one share of New Series B