Company: NXDT
Filing Date: 2025-01-30
Form Type: 424B5
Source: 0001437749-25-002263
Chunk: 41

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-30
Form: 424B5
Chunk 41
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 If, after applying these conversion limits, the number of Series B Preferred Shares to be converted is less than the number of Series B Preferred Shares submitted for conversion by a holder, the excess Series B Preferred Shares will remain subject to conversion in future periods until the earlier of (i) all Series B Preferred Shares submitted by such holder for conversion have been converted, or (ii) such holder delivers to us a written notice of withdrawal stating the number of withdrawn Series B Preferred Shares and the number of Series B Preferred Shares, if any, which remain subject to conversion.

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If, as a result of such conversion, any holder of Series B Preferred Shares, other than a holder who has received an exception from the share ownership restrictions included in our organizational documents, would become a holder of a number of common shares in excess of the share ownership limits, then the Company will convert only a number of Series B Preferred Shares of the holder such that the holder will not hold a number of common shares in excess of the share ownership limits subsequent to such conversion.

We will not issue fractional shares of our common shares upon the conversion of the Series B Preferred Shares. As to any fraction of a common share which the shareholder would otherwise be entitled to receive upon such conversion, the Company will pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the conversion price.

Conversion of the Series B Preferred Shares will be made at the option of the holder upon delivery by the holder of a duly completed notice to the Company or through the procedures of DTC, which will be irrevocable except upon written consent of the Company, in compliance with Stated Transfer Procedures. The number of common shares issuable to a holder of Series B Preferred Shares upon conversion will be determined based on the per share conversion rate in effect as of the date the holder delivers a duly completed notice to the Company. The conversion date for shares to be converted at the option of a holder will be a date selected by the Company in its discretion that is within 45 days of the date the Company receives a conversion notice from the holder. Each conversion notice will specify the number of Series B Preferred Shares to be converted, the number of Series B Preferred Shares owned prior to the conversion at issue and the number of Series B Preferred Shares owned subsequent to the conversion at issue.

In the event that we provide notice of our intent to redeem all or some portion of outstanding Series B Preferred Shares for which a holder has provided a conversion notice, such