Company: CXAI
Filing Date: 2025-05-09
Form Type: S-1
Source: 0001829126-25-003532
Chunk: 15

Company: CXApp Inc.
Filing Date: 2025-05-09
Form: S-1
Chunk 15
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 requisite approval of our stockholders under applicable Nasdaq rules, we may not issue in excess of 19.99% of our outstanding common stock (approximately 3.9 million shares based on shares outstanding as of March 2025) pursuant to the Avondale Purchase Agreement. This Exchange Cap applies to the aggregate number of shares issued under all Avondale Pre-Paid Purchases to Avondale. If stockholder approval is not obtained at our upcoming annual meeting (which we have committed to seek by May 31, 2025), then we will be prohibited from issuing any shares above the Exchange Cap, and any portion of the prepaid balance that cannot be converted into shares due to the cap would have to be repaid by us in cash. We have agreed to seek stockholder approval at our 2025 annual meeting to authorize the full issuance of shares under the Avondale Purchase Agreement, and if approval is not obtained at that meeting, to continue to seek approval at subsequent meetings every 90 days until obtained.

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Registration of Shares: In connection with the Avondale Purchase Agreement, we agreed to file a registration statement with the SEC covering the resale by Avondale of a significant number of shares of common stock. Specifically, we were required to register at least 18,500,000 shares (inclusive of the 80,000 Commitment Shares and the maximum shares potentially issuable under the Initial Avondale Pre-Paid Purchase) within 30 days of the initial closing. We are fulfilling that obligation with the registration statement of which this prospectus is a part. In addition, although the Avondale Purchase Agreement originally contemplated that we would register additional shares in the future as we draw any subsequent tranches (so that the full $20,000,000 commitment would eventually be registered), we have opted to register the full potential amount at this time. Accordingly, this prospectus covers the resale of all shares that may be issued to Avondale under the Avondale Purchase Agreement, including the Commitment Shares, the shares underlying the Initial Avondale Pre-Paid Purchase, and all shares that could be issued under any future Avondale Pre-Paid Purchases (assuming we utilize the entire remaining commitment amount, subject to the Exchange Cap and stockholder approval). By registering these shares now, we aim to ensure that Avondale has the ability to resell any shares we issue to it under the Avondale Purchase Agreement without delay, which was a condition