Company: APXIF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026189
Chunk: 488

Company: APx Acquisition Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 488
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 the number of Class A ordinary shares received by a holder upon exercise will be fewer than it
would have been had such holder exercised his or her warrant for cash. For example, if the holder is exercising 875 public warrants at
$11.50 per share through a cashless exercise when the Class A ordinary shares have a fair market value of $17.50 per share when there
is no effective registration statement, then upon the cashless exercise, the holder will receive 300 Class A ordinary shares. The holder
would have received 875 Class A ordinary shares if the exercise price was paid in cash. This will have the effect of reducing the potential
“upside” of the holder’s investment in our company because the warrant holder will hold a smaller number of Class A
ordinary shares upon a cashless exercise of the warrants they hold.

The grant of registration rights to our initial shareholders
and holders of our private placement warrants may make it more difficult to complete our initial business combination, and the future
exercise of such rights may adversely affect the market price of our Class A ordinary shares. 

Our initial shareholders and their permitted
transferees can demand that we register the Class A ordinary shares into which founder shares are convertible, holders of our private
placement warrants and their permitted transferees can demand that we register the private placement warrants and the Class A ordinary
shares issuable upon exercise of the private placement warrants, and holders of securities that may be issued upon conversion of working
capital loans may demand that we register such units, shares, warrants or the Class A ordinary shares issuable upon exercise of such
warrants. We will bear the cost of registering these securities. The registration and availability of such a significant number of securities
for trading in the public market may have an adverse effect on the market price of our Class A ordinary shares. In addition, the existence
of the registration rights may make our initial business combination more costly or difficult to conclude. This is because the shareholders
of the target business may increase the equity stake they seek in the combined entity or ask for more cash consideration to offset the
negative impact on the market price of our Class A ordinary shares that is expected when the ordinary shares owned by our initial shareholders,
holders of our private placement warrants or holders of our working capital loans or their respective permitted transferees are registered.

We may issue additional Class A ordinary shares or preferred
shares to complete our initial business combination or under an employee incentive plan after completion of our initial business combination.
We may