Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 46

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 46
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 fair and that is perceived to be fair.

The CDOR Amendment constitutes a “related party transaction” within the meaning of MI 61-101, as the CDOR Amendment has the effect of amending the terms of the CDOR Loans, which are securities of the REIT beneficially owned or over which control is exercised by Mr. Dondero (a “related party” of the REIT because of the fact that Mr. Dondero beneficially owns or controls Units of the REIT that carry more than 10% of the voting rights attached to all of the REIT’s issued and outstanding Units). The CDOR Amendment is not subject to the formal valuation requirements of Section 5.4 of MI 61-101, as the Specified Markets Exemption is available to the REIT.

MI 61-101 requires that a related party transaction be subject to “minority approval” (as defined in MI 61-101) of every class of “affected securities” of the issuer, in each case voting separately as a class. As such, the resolution approving the CDOR Amendment to the CDOR Loans (the “Amended CDOR Loans Resolution”) will require the affirmative vote of the “Minority Unitholders, present in person or represented by proxy at the Meeting, excluding the votes attached to the Unitholders that are beneficially owned or over which control or direction is exercised by Mr. Dondero, and any “related party” of the REIT within the meaning of MI 61-101 (subject to the exceptions set out therein) and any person acting jointly or in concert with the foregoing in respect of the Amended CDOR Loans Resolution. The full text of the Amended CDOR Loans Resolution is set forth in Appendix C to this Information Circular.

For purposes of the minority approval requirements of MI 61-101, to the knowledge of the REIT after reasonable inquiry, the votes attached to the 23,246,795 Units beneficially owned, directly or indirectly, or over which control or direction is exercised by Interested Unitholders, representing, as of the Record Date, approximately 79.5% of the issued and outstanding Units, will be excluded in determining whether minority approval for the Amended CDOR Loans Resolution is obtained.

As of the Record Date, the Units to be excluded for the purposes of minority approval requirement are set out below:

| Unitholder(1)                           |               Number of Units 
 Owned, Controlled or Directed | Percentage of Outstanding Units(