Company: NXDT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001356115-25-000003
Chunk: 609

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 609
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 the Company’s property (measured at the time that such transaction was originally approved by two-thirds of the trustees) will require the affirmative vote of the holders of not less than 75% of the shares of beneficial interest of each affected class or series outstanding, voting as separate classes or series, unless the transaction has been approved by 80% of the trustees, in which case, subject to a resolution of the trustees specifying a greater or a lesser requirement with respect to the vote or quorum, such transaction will require the affirmative vote of a majority our shares of beneficial interest present in person or represented by proxy and entitled to vote thereon, at a meeting where the holders of a majority of our shares of beneficial interest entitled to vote on the matter are present in person or by proxy.

Risks Related to the NHT Merger

Non-completion of the NHT Merger may have an adverse effect on our business and results of operations.

There are risks to the Company of the NHT Merger not being completed, including the costs to the Company incurred in pursuing the NHT Merger and the risks associated with the temporary diversion of NHT’s managements’ attention away from the operation of NHT. If the NHT Merger is not completed, the market price of NHT’s units may be materially adversely affected, impacting the value of our investment in NHT. NHT may terminate the merger agreement under certain limited circumstances, including if there is an order of any court or other governmental authority enjoining, prohibiting or rendering illegal the consummation of the NHT Merger, or if the Company breaches the merger agreement in such a way that the conditions precedent to closing the NHT Merger are incapable of being satisfied prior to the outside date contained in the merger agreement, May 22, 2025. In addition, to the extent the NHT Merger is not completed before the outside date contained in the merger agreement, May 22, 2025, either NHT or the Company would have the right to terminate the merger agreement. The completion of the NHT Merger is further subject to a number of conditions precedent, some of which are outside the control of the Company, including that the consents of certain third-parties be obtained prior to closing. There can be no assurance that such conditions will be satisfied or waived, and as such, the completion of the NHT Merger is uncertain.

Lawsuits challenging the NHT Merger may be filed against NHT and the Company, and an adverse