Company: NXDT
Filing Date: 2025-04-23
Form Type: S-4/A
Source: 0001437749-25-012810
Chunk: 37

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-23
Form: S-4/A
Chunk 37
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 the Conversion will, subject to restrictions on ownership and transfer of New Stock set forth in the New NXDT Charter, be freely transferable under the Securities Act, except for shares issued to any stockholder who may be deemed to be an “affiliate” of New NXDT for purposes of Rule 144 promulgated under the Securities Act. Persons who may be deemed to be affiliates include individuals or entities that control, are controlled by, or are under the common control with, New NXDT and may include executive officers, directors and significant stockholders of New NXDT. Shares of New Stock will be subject to restrictions on ownership and transfer set forth in the New NXDT Charter including, subject to certain exceptions, a limitation on ownership by any person of more than 9.8% in value of the aggregate of the outstanding shares of the stock of New NXDT of any class or series, or 9.8%, in value or in number of shares, whichever is more restrictive, of the outstanding shares of New Common Stock and provisions for an automatic transfer to a charitable trust of any shares owned or acquired in excess of the 9.8% limits. See “Description of New NXDT Stock–Restrictions on Ownership and Transfer.”

Treatment of Old NXDT’s Compensation Plans and Outstanding Equity Awards in the Conversion

At the Effective Time, New NXDT will be deemed to have assumed the 2023 Plan and, if approved by Old NXDT’s shareholders, the A&R 2023 Plan. As of the Effective Time, all outstanding rights of participants to acquire Old Common Shares under the 2023 Plan or the A&R 2023 Plan, as applicable, including pursuant to restricted share units issued by Old NXDT, will automatically convert into rights to acquire an equal number of shares of New Common Stock, on the same terms and conditions that were in effect prior to the Conversion.

Conversion of Old Shares; Conversion Procedures

Conversion of Old Shares

The Plan of Conversion provides that, at the Effective Time, by virtue of the Conversion and without further action on the part of Old NXDT, New NXDT or the shareholders of Old NXDT, each outstanding Old Common Share will be converted into one share of New Common Stock, each outstanding Old Series A Preferred Share will be converted into one share of New Series A Preferred Stock and each outstanding Old Series B Preferred Share will be converted into one share of New Series B Preferred Stock. As a result of the Conversion, the Declaration of Trust will cease to be effective, and the New NXDT