Company: NXDT
Filing Date: 2025-04-23
Form Type: S-4/A
Source: 0001437749-25-012810
Chunk: 191

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-23
Form: S-4/A
Chunk 191
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 rights.

Under the MGCL, a Maryland corporation generally cannot dissolve, amend its charter, merge or consolidate with, or convert into, another entity, sell all or substantially all of its assets or engage in a statutory share exchange unless the action is advised by New NXDT’s board of directors and approved by the affirmative vote of stockholders entitled to cast at least two-thirds of the votes entitled to be cast on the matter, unless a lesser percentage (but not less than a majority of all of the votes entitled to be cast on the matter) is specified in the corporation’s charter. The New NXDT Charter provides that these actions must be approved by a majority of all of the votes entitled to be cast on the matter.

The MGCL also permits a corporation to transfer all or substantially all of its assets without the approval of its stockholders to an entity owned, directly or indirectly, by the corporation.

New Series A Preferred Stock

General

The New NXDT Charter authorizes the issuance of 100,000,000 shares of preferred stock in one or more classes or series. A series of 4,800,000 shares of preferred stock has been designated as the New Series A Preferred Stock. We anticipate that there will be 3,359,593 shares of New Series A Preferred Stock issued and outstanding immediately following the Conversion.

The New NXDT Charter provides that an increase in the number of authorized shares of preferred stock or the issuance of additional shares of any series of preferred stock, including New Series A Preferred Stock and New Series B Preferred Stock, pursuant to the New NXDT organizational documents will not in and of itself be considered to adversely affect the rights and preferences of the preferred stock and holders of shares of the New Series A Preferred Stock, by virtue of their acquisition of shares of New Series A Preferred Stock, will be deemed to have authorized such issuances by the board of directors. The board of directors may, without notice to or the consent of holders of shares of New Series A Preferred Stock, authorize the issuance and sale of additional shares of New Series A Preferred Stock and New Series B Preferred Stock and authorize and issue additional shares of stock ranking junior to the New Series A Preferred Stock and New Series B Preferred Stock with respect to distribution rights and rights upon liquidation, dissolution, termination, cancellation or winding up.

Ranking

The New Series A Preferred Stock, with respect to distribution rights and rights upon our liquidation, dissolution, termination, cancellation or winding up, will rank senior to the New Common Stock and any other stock ranking junior to