APx Acquisition Corp. I to be delisted from Nasdaq

APx Acquisition Corp. I ("APXI"), a special purpose acquisition company with a concerning Altman Z-Score of 0.73 indicating potential financial distress, will be delisted from The Nasdaq Stock Market LLC ("Nasdaq") as of the opening of business on Monday, December 17, 2024, following its failure to complete a business combination within the required timeframe.

According to a letter received from Nasdaq on Monday, December 10, 2024, APXI did not fulfill the conditions of Nasdaq Listing Rule IM-5101-2, which mandates that a business combination must be finalized within 36 months of an initial public offering. InvestingPro data shows the stock trading just 1.1% above its 52-week low, reflecting investor concerns about the company's future.

The Nasdaq staff has announced that trading of APXI's Class A common stock, warrants, and units will be suspended and a Form 25-NSE will be filed with the Securities and Exchange Commission to formally remove APXI's securities from listing and registration on Nasdaq. According to InvestingPro analysis, APXI maintains a conservative debt profile with a total debt to capital ratio of just 0.01, though this offers little comfort given the delisting situation.

Get exclusive access to 12 more ProTips and comprehensive financial metrics with an InvestingPro subscription. This action comes after APXI did not complete its initial business combination by the deadline of December 6, 2024.

In response to the delisting, APXI plans to transition the listing of its securities to the OTC market, while maintaining a return on assets of 3.6% in the last twelve months. The change in listing status does not impact APXI's ongoing efforts to close a previously announced business combination with OmnigenicsAI Corp, a Cayman Islands exempted company. Both entities remain committed to completing the merger, with OmnigenicsAI Corp intending to apply for the listing of its securities on the Nasdaq Stock Market upon the closing of the business combination.

Despite the delisting, APXI will continue to be a reporting company under the Securities Exchange Act of 1934, as amended, and will maintain its obligations to disclose financial and operational information as required.

In other recent news, APx Acquisition Corp. I has extended its merger period to December 2025, following an amendment to its corporate charter and trust agreement. The company has also issued two significant promissory notes to Bioceres LLC, an indirect shareholder of OmnigenicsAI Corp, amounting to $700,000 and $446,000 respectively, both carrying a high-interest rate of 20% per annum. In addition, APx Acquisition Corp. I is set to be delisted from NASDAQ due to non-compliance with listing criteria, specifically as the aggregate market value of outstanding warrants fell below the required $1 million threshold. Despite this, the delisting does not impact the listing of its Class A ordinary shares.

Furthermore, the company has halted its acquisition of MultiplAI Health Ltd due to emerging risks and regulatory changes, influenced by significant discrepancies in operational focus and financial requirements between the two entities. However, APx Acquisition Corp. I and OmnigenicsAI plan to proceed with their business combination.

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