APx Acquisition Corp. I, a special purpose acquisition company, announced Monday that it has terminated a previously announced agreement to acquire MultiplAI Health Ltd. The agreement, part of a larger business combination with OmnigenicsAI Corp and its subsidiary, was called off due to emerging risks and regulatory changes.
The initial agreement, dated March 25, 2024, involved APx Acquisition Corp. I (the “Company”), OmnigenicsAI, Heritas Merger Sub Limited, and MultiplAI. The plan was for OmnigenicsAI to acquire all ordinary shares of MultiplAI. However, significant discrepancies in operational focus and financial requirements between the two companies were identified, leading to concerns about the combined entity's financial risk.
Moreover, regulatory challenges arose when the U.S. Food and Drug Administration issued a final rule on Laboratory Developed Tests (LDTs) on May 6, 2024. The new rule posed compliance challenges for MultiplAI's LDT product, requiring additional resources that were not anticipated in the original agreement.
As a result, the share purchase agreement with MultiplAI was terminated on August 27, 2024. This termination means that MultiplAI will not be part of the business combination as initially planned, and all rights and obligations under the agreement have ceased, with certain exceptions.
Despite this development, APx Acquisition Corp. I and OmnigenicsAI intend to proceed with their business combination without MultiplAI. The details of the revised business combination will be outlined in a registration statement on Form F-4 to be filed with the Securities and Exchange Commission (SEC) by OmnigenicsAI.
The Company advises shareholders and interested parties to read the forthcoming proxy statement/prospectus, as well as other documents filed with the SEC, as they will contain important information about the proposed business combination. The information in this article is based on a press release statement.
In other recent news, APx Acquisition Corp. I has issued a $446,000 promissory note to Bioceres LLC, an indirect shareholder of OmnigenicsAI Corp. This note, bearing a 20% per annum interest rate, is a significant component of APx's ongoing business combination with OmnigenicsAI Corp. The principal and any accrued interest are due upon completion of APx's initial business combination, known as the Maturity Date.
InvestingPro Insights
In light of APx Acquisition Corp. I's decision to terminate the acquisition agreement with MultiplAI Health Ltd., investors may find the latest metrics from InvestingPro particularly relevant. The company has a market capitalization of $115.45 million and a price-to-earnings (P/E) ratio of 29.15, which adjusts slightly to 29.75 when considering the last twelve months as of Q3 2023. This valuation comes as the company trades near its 52-week high, with the price at 88.36% of that peak.
Two InvestingPro Tips that stand out in this context are the company's low price volatility and its profitability over the last twelve months, as reflected by a basic and diluted EPS of $0.4. These factors may offer some stability and reassurance to investors during a time of change. However, it's also noted that APx Acquisition Corp. I does not pay dividends and that its short-term obligations exceed its liquid assets, which could be areas of concern for potential investors. For a deeper dive into the company's financial health and additional insights, there are over five detailed InvestingPro Tips available, which can be found at Investing.com.
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