Company: CXAI
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001829126-25-002457
Chunk: 45

Company: CXApp Inc.
Filing Date: 2025-04-08
Form: 424B3
Chunk 45
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 statements.

By seeking stockholder approval
under the Nasdaq 20% Rule for these potential financings, we aim to ensure sufficient capacity to issue additional shares without triggering
a separate stockholder vote, thereby providing the Company with greater flexibility to raise capital if or when needed.

Effect on Current Stockholders

If this Proposal 3 is
approved, stockholders may experience dilution in the ownership and/or voting power of their existing shares to the extent we issue
securities beyond the 20% threshold under one or more private placements (including any Prepaid Equity Advance with Avondale or
Pre-Paid Purchase with Streeterville). Future issuances could also reduce earnings per share, and any impact on our stock price may
further affect existing stockholders’ interests. The actual amount of dilution will depend on many factors, including the
size, terms and timing of any private placement transactions.

Consequences if Proposal 3 is Not Approved

If our stockholders do not approve Proposal 3, we may be unable to raise sufficient equity capital in a timely or cost-effective manner if such financing would otherwise exceed the 20% threshold or fall below the Minimum Price, as defined by Nasdaq. This limitation could restrict our ability to:

| ● | Obtain full financing from the potential Prepaid Equity Advance, Prepaid Purchase or future similar transactions; |

| ● | Support our operations, satisfy strategic obligations or pursue potential acquisitions or growth opportunities. |

We could be forced to rely on alternative, potentially less attractive funding structures or reduce the scale and timing of our growth initiatives.

Vote Required

Approval of Proposal 3 requires the affirmative vote of the holders of a majority of the total number of shares of common stock present at the meeting in person (including virtually or by proxy) or represented by proxy and entitled to vote thereon, voting as a single class. Abstentions will be counted as votes “AGAINST,” and broker non-votes will have no effect on the outcome of the vote.

Recommendation of the Board

The Board recommends a vote “FOR” the approval, under Nasdaq Listing Rule 5635(d), of the issuance of shares (or securities convertible or exercisable for such shares) in one or more private placements in excess of 20% of our outstanding common stock, including potential issuances under the Avondale Purchase Agreement and Streetervile Purchase Agreement.

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PROPOSAL 4: APPROVAL OF THE AMENDED AND RESTATED EQUITY INCENTIVE PLAN