Company: CXAI
Filing Date: 2025-05-09
Form Type: S-1
Source: 0001829126-25-003532
Chunk: 16

Company: CXApp Inc.
Filing Date: 2025-05-09
Form: S-1
Chunk 16
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 of the financing. Avondale is identified in this prospectus as a Selling Securityholder solely for purposes of reselling the shares of common stock it may acquire; Avondale has no obligation to purchase any additional shares beyond the Initial Avondale Pre-Paid Purchase and the additional draws we may request.

We caution that the actual number of shares of common stock that may be issued to Avondale under the Avondale Purchase Agreement is uncertain and will depend on a variety of factors, including the timing and amount of any additional Avondale Pre-Paid Purchases we elect to draw, the prevailing market price of our common stock at the times Avondale elects to receive Avondale Purchase Shares, and the applicable Avondale Purchase Share prices (which are subject to the formulas and floor price noted above). As a result, Avondale may ultimately receive and resell a substantial number of shares, possibly up to 37 million or more shares, which would significantly increase the number of shares of our common stock outstanding and available for sale in the public market. Such issuances, if they occur, will dilute our existing stockholders and could exert downward pressure on the market price of our stock (see “Risk Factors” and “Dilution” below). For example, the 18,500,000 shares being registered for resale in connection with the Avondale Purchase Agreement (including the 80,000 Commitment Shares) would represent nearly all of the number of shares of our common stock outstanding prior to this offering. Investors should be aware that Avondale has an incentive to sell the shares it acquires quickly into the public market, since it will acquire those shares at a discount to market price. This could result in significant volumes of our stock being sold by Avondale over a relatively short period, which may adversely affect our stock price.

We intend to use the
proceeds that we have received from the Initial Avondale Pre-Paid Purchase and any proceeds we may receive from additional Avondale
Pre-Paid Purchases for working capital and general corporate purposes. See “Use of Proceeds.” However, we will
not receive any proceeds from the resale of shares by Avondale or any other Selling Securityholder under this prospectus.

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Summary of Risk Factors In addition to the other information contained in this prospectus, the following risks have the potential to impact the business and operations of CXApp. An investment in our securities involves a high degree