Company: APXIF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026189
Chunk: 69

Company: APx Acquisition Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 69
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daq,
because we will no longer be required to comply with Nasdaq’s continued listing standards, our investors will not enjoy the protections
afforded to investors by listed companies’ compliance with such standards.

An additional potential negative consequence
of delisting from the Nasdaq is that such delisting would likely lead to our securities losing their status as “covered securities.”
The National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating
the sale of certain securities, which are referred to as “covered securities.” Because our securities are currently listed
on Nasdaq (although trading is currently suspended, as further described herein), our units, SPAC Ordinary Shares and Public Warrants
are considered covered securities under such statute. Although states are preempted from regulating the sale of our securities, this
federal statute does allow the states to investigate companies if there is a suspicion of fraud, and, if there is a finding of fraudulent
activity, then the states can regulate or bar the sale of covered securities in a particular case. While we are not aware of a state
having used these powers to prohibit or restrict the sale of securities issued by blank check companies, other than the State of Idaho,
certain state securities regulators view blank check companies unfavorably and might use these powers, or threaten to use these powers,
to hinder the sale of securities of blank check companies in their respective states. If we were no longer listed on Nasdaq, our securities
would not be covered securities and we therefore may become subject to such additional regulation in each state resulting from the loss
of “covered securities” status, including in connection with a business combination.

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A further negative consequence of our delisting
from Nasdaq will result from the fact that the closing of the Business Combination is conditioned on the listing of the post-combination company
on Nasdaq. Although we believe that, after our securities are delisted from Nasdaq, we may still potentially be able to meet Nasdaq’s
initial listing requirements via the consummation of the Business Combination, there can be no guarantee that Nasdaq will approve such
initial listing application, which may delay, or ultimately prevent the consummation of the proposed Business Combination.

If we are unable to consummate the Business Combination
or any other business combination and are forced to liquidate, our investors would not be able to realize the benefits of owning shares
in a successor operating business, including the potential appreciation in the value of