APx Acquisition Corp. I, a special purpose acquisition company, received a notice on September 4, 2024, from the Nasdaq Listing Qualifications Department warning that its outstanding warrants' aggregate market value had fallen below the required minimum of $1 million. Consequently, the company is not in compliance with Nasdaq's continued listing standards.
The notice specified that APx Acquisition Corp. I has 45 days, until October 19, 2024, to submit a plan to regain compliance with Nasdaq's Listing Rule 5452(b)(C). If the plan is accepted, the company will then have until March 3, 2025, to demonstrate compliance. If the plan is rejected, the company may appeal to a hearings panel.
This development does not immediately affect the listing or trading of the company's warrants on the Nasdaq Global Market, nor does it impact the listing of the company's Class A ordinary shares.
APx Acquisition Corp. I has expressed its intention to submit a compliance plan within the stipulated period and to work towards regaining compliance within the 180-day timeframe, if granted.
However, if the company fails to meet the aggregate market value requirement by the end of the compliance period, Nasdaq could initiate delisting procedures. The company could then appeal any delisting decision.
This news comes as a critical juncture for APx Acquisition Corp. I, which is listed under the symbols NASDAQ:APXIU for its units, NASDAQ:APXI for its Class A ordinary shares, and NASDAQ:APXIW for its warrants. The company, based in Grand Cayman, is classified under the "Blank Checks" industry with a fiscal year-end of December 31.
In other recent news, APx Acquisition Corp. I has halted its acquisition of MultiplAI Health Ltd due to emerging risks and regulatory changes. The termination of the agreement, initially part of a larger business combination with OmnigenicsAI Corp, was influenced by significant discrepancies in operational focus and financial requirements between the two companies.
Regulatory challenges also arose when the U.S. Food and Drug Administration issued a final rule on Laboratory Developed Tests (LDTs), which posed compliance issues for MultiplAI's LDT product.
Despite this, APx Acquisition Corp. I and OmnigenicsAI intend to proceed with their business combination, with details to be outlined in an upcoming registration statement on Form F-4. In other developments, APx Acquisition Corp. I has issued a $446,000 promissory note to Bioceres LLC, an indirect shareholder of OmnigenicsAI Corp. This note, with a 20% per annum interest rate, is due upon completion of APx's initial business combination.
InvestingPro Insights
As APx Acquisition Corp. I navigates its compliance challenges with Nasdaq's listing standards, it's crucial for investors to consider the company's financial health and market performance. Based on real-time data from InvestingPro, APx Acquisition Corp. I has a market capitalization of $115.65 million, with an adjusted P/E ratio over the last twelve months as of Q3 2023 standing at 29.67. Despite the concerns over its Nasdaq listing, the company has been profitable over the last twelve months, as indicated by a basic and diluted EPS (Continued Operations) of $0.4 USD.
InvestingPro Tips suggest that the stock is currently in overbought territory and trades with low price volatility. While APx Acquisition Corp. I does not pay dividends to shareholders, it's noteworthy that the stock is trading near its 52-week high, with its price being at 88.36% of this peak. These insights could be pivotal for investors assessing the risk and potential of APx Acquisition Corp. I during this period of uncertainty.
For those seeking a deeper dive into the company's prospects, InvestingPro offers additional tips, with a total of 7 tips available at: https://www.investing.com/pro/APXIU. These tips provide a comprehensive analysis that could guide investors on whether to hold, sell, or buy shares amidst the compliance issues and market performance of APx Acquisition Corp. I.
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