Company: APXIF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026189
Chunk: 68

Company: APx Acquisition Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 68
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 penny stocks require
a broker-dealer to (i) obtain from the investor information concerning his financial situation, investment experience and investment
objectives; (ii) reasonably determine, based on that information, that transactions in penny stocks are suitable for the investor
and that the investor has sufficient knowledge and experience as to be reasonably capable of evaluating the risks of penny stock transactions;
(iii) provide the investor with a written statement setting forth the basis on which the broker-dealer made the determination
in (ii) above; and (iv) receive a signed and dated copy of such statement from the investor, confirming that it accurately
reflects the investor’s financial situation, investment experience and investment objectives. The regulations applicable to penny
stocks may severely affect the market liquidity for our ordinary shares and could limit the ability of shareholders to sell our ordinary
shares in the secondary market.

Following the anticipated delisting by Nasdaq,
if we are not able to list our securities on another national securities exchange, such securities may continue to be quoted on an over-the-counter market.
However, if this were to occur, our investors would likely face significant and material adverse consequences with respect to their investment
in us, including, but not limited:

●a limited availability
                                            of market quotations for our securities;

●reduced
                                            liquidity for our securities;

●as
                                            discussed above, a determination that our ordinary shares are “penny stock”,
                                            which will require brokers trading in such ordinary shares to adhere to more stringent rules
                                            and which likely would serve as an additional factor that may reduce the trading activity
                                            in the secondary trading market for our securities;

●a
                                            limited amount of news and analyst coverage with respect to our securities; and

●a
                                            decreased ability to issue additional securities or obtain additional financing in the future,
                                            which may adversely impact our efforts to consummate a Business Combination and otherwise
                                            continue its operations.

As a result, an investor would likely find it
more difficult to trade, or to obtain accurate price quotations for, our securities following our delisting from Nasdaq. Delisting would
likely also reduce the visibility, liquidity and value of our securities, including as a result of reduced institutional investor interest
in us, and may increase the volatility of our securities. Delisting could also cause a loss of confidence of potential business combination
partners, which could further harm our ability to consummate a business combination. Additionally, following our delisting from Nas