Company: NXDT
Filing Date: 2025-04-23
Form Type: S-4/A
Source: 0001437749-25-012810
Chunk: 209

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-23
Form: S-4/A
Chunk 209
---
% 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 Preferred Stock, all of such holder’s share of New Series B Preferred Stock will be converted into New Common Stock. Otherwise, all conversion amounts will be rounded down such that after giving effect to any conversions, no holder is left owning a fractional share. For example, if after applying the conversion limits, an investor would own 2.5 shares, New NXDT will convert 0.5 fewer shares from such holder so that the holder is left owning three shares. If, after applying these conversion limits, the number of Series B Preferred Shares to be converted is less than the number of shares of New Series B Preferred Stock submitted for conversion by a holder, the excess shares of New Series B Preferred Stock will remain subject to conversion in future periods until the earlier of (i) all New Series B Preferred Stock submitted by such holder for conversion have been converted, or (ii) such holder delivers to New NXDT a written notice of withdrawal stating the number of withdrawn shares of New Series B Preferred Stock and the number of shares of New Series B Preferred Stock, if any, which remain subject to conversion.

If, as a result of such conversion, any holder of Series B Preferred Stock, other than a holder who has received an exception from the stock ownership restrictions included in the New NXDT organizational documents, would become a holder of a number of shares of New Common Stock in excess of the stock ownership limits, then New NXDT will convert only a number of shares of New Series B Preferred Stock of the holder such that the holder will not hold a number of shares of New Common Stock in excess of the stock ownership limits subsequent to such conversion.

New NXDT will not issue fractional shares of New Common Stock upon the conversion of the Series B Preferred Stock. As to any fraction of a share of New Common Stock which the stockholder would otherwise be entitled to receive upon such conversion, New NXDT will pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the conversion price.

Conversion of the Series B Preferred Stock will be made at the option of the holder upon delivery by the holder of a duly completed notice to New NXDT or through the procedures of The Depository Trust Company (“DTC”), which will be ir