Company: CXAI
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001829126-25-002457
Chunk: 43

Company: CXApp Inc.
Filing Date: 2025-04-08
Form: 424B3
Chunk 43
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Unless and until we obtain
stockholder approval under the Nasdaq 20% Rule, the total number of shares of Common Stock issuable to Avondale under all Pre-Paid Purchases
may not exceed the threshold set by that rule (the “Exchange Cap”). Should we not secure that approval at our upcoming annual
meeting (or any adjournment/postponement thereof), any remaining outstanding balance above the Exchange Cap under any Pre-Paid Purchase
will be settled in cash. Further, Avondale’s beneficial ownership of our Common Stock is capped at 9.99% of shares then outstanding.

We have agreed to file a registration
statement to cover the resale of at least 10,000,000 shares (including the Commitment Shares and those issuable under the Initial Pre-Paid
Purchase) within 30 days following the initial closing. If we elect to draw additional Pre-Paid Purchases, further registration obligations
may apply, so that the entire $20,000,000 Commitment Amount (including all corresponding shares) can ultimately be registered. For clarity,
the discussion here addresses the Commitment Shares and the shares issuable under the Initial Pre-Paid Purchase. Any future Pre-Paid Purchases
or shares associated therewith would be registered under a new or amended registration statement, if and when such additional draws are
made.

Although the Avondale Purchase
Agreement has been executed, stockholder approval of this Proposal will enable the Board to issue shares in excess of the 20% threshold
under the Nasdaq 20% Rule without requiring additional stockholder action, should the Company decide to proceed with any further draws
or a similar financing.

Overview of Prepaid Equity Advance Under the Streeterville Purchase Agreement

Under the Streeterville Purchase
Agreement, the Company may: (i) issue and sell one or more Pre-Paid Purchases up to an aggregate purchase amount of $10,000,000 in exchange
for shares of Common Stock, on the terms and conditions set forth therein; (ii) issue and sell an initial Pre-Paid Purchase in the principal
amount of $2,625,000 (the “Streeterville Initial Pre-Paid Purchase”); and (iii) deliver 40,000 shares of Common Stock to Streeterville.

Under each Pre-Paid Purchase,
Streeterville has the right (but not the obligation) to require the Company to deliver shares of Common Stock (“Streeterville Purchase
Shares”)