Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 94

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 94
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itions recommend that directors or trustees acquire shares of the companies on which they serve as board members. For example, the Canadian Coalition for Good Governance policy states that “minimum shareholding requirements for directors (achievable over a predetermined time frame) establish and maintain an alignment of interests between directors and shareholders by requiring trustees to have a meaningful investment in the company.”

Interlocking Trustees and Officers. In considering the Transaction and any position taken by the REIT with respect to the Transaction, Unitholders should be aware that certain trustees and officers of the Board have interests in connection with the Transaction, which may present them with certain actual or potential conflicts of interest. James Dondero is a trustee of NXDT and serves as President and Chairman. In addition, Mr. Dondero beneficially owns, directly or indirectly, or exercises control or direction over, 79.5% of NHT’s voting securities as of the date hereof. Accordingly, Mr. Dondero declared his interest in and did not participate in deliberations on, and abstained from voting in respect of the Transaction Resolution. Matthew McGraner serves as Chief Investment Officer for both the REIT and NXDT. Paul Richards, who was appointed as the Chief Financial Officer and Corporate Secretary of the REIT effective January 1, 2025, was also appointed Chief Financial Officer, Executive VP-Finance, Treasurer and Assistant Secretary of NXDT effective January 1, 2025.

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Indemnification of Trustees, Tail Insurance and Deferred Units.The indemnification of the Trustees and the Tail Insurance, all as described above, may be considered benefits to the applicable Trustees or senior officers of the REIT for the purposes of MI 61-101. In addition, each of the Trustees holding Deferred Units will be entitled to receive $0.36 in cash per Deferred Unit at Closing.

The REIT is a reporting issuer in certain of the provinces of Canada and, accordingly, is subject to applicable securities laws of such provinces, including MI 61-101. MI 61-101 is intended to regulate certain transactions which raise the potential for conflicts of interest, including business combination transactions, to ensure that all securityholders of an issuer are treated in a manner that is fair and that is perceived to be fair.

The Transaction constitutes a “business combination” within the meaning of MI 61-101. The Transaction is not subject to the formal valuation requirements of Section 5.4 of MI 61-101 as the REIT can