APx Acquisition Corp. I, a company categorized under the "blank checks" industrial classification and operating in the real estate and construction sector, is set to be delisted from The NASDAQ Stock Market. The delisting follows a written notice from NASDAQ's Listing Qualifications Department dated October 29, 2024, stating the company's failure to comply with the continued listing criteria.
On September 4, 2024, APx Acquisition Corp. I first received notification that its aggregate market value of outstanding warrants was below the $1 million threshold required by NASDAQ's Listing Rule 5452(b)(C). In response, the company presented a Compliance Plan to regain conformity with the listing standards. However, NASDAQ concluded that the plan lacked sufficient evidence to demonstrate that the company could meet the requirements by the expiration date of December 6, 2024.
Unless APx Acquisition Corp. I appeals this determination by November 5, 2024, trading of the company's warrants and units will be suspended at the start of business on that day. The company has indicated it does not plan to appeal, which will result in the delisting of its warrants and units, though this action does not impact the listing of its Class A ordinary shares, except for those included within the units.
In other recent news, APx Acquisition Corp. I received a notice from the Nasdaq Listing Qualifications Department due to the aggregate market value of its outstanding warrants falling below the required minimum. The company now has a 45-day period to submit a plan for regaining compliance. In other developments, APx Acquisition Corp. I has halted its acquisition of MultiplAI Health Ltd due to emerging risks and regulatory changes. The termination of the agreement was influenced by significant discrepancies in operational focus and financial requirements between the two companies.
Despite this, APx Acquisition Corp. I and OmnigenicsAI intend to proceed with their business combination. Furthermore, APx Acquisition Corp. I has issued a $446,000 promissory note to Bioceres LLC, an indirect shareholder of OmnigenicsAI Corp. This note bears a 20% per annum interest rate and is due upon completion of APx's initial business combination. These are among the recent developments surrounding APx Acquisition Corp. I.
InvestingPro Insights
As APx Acquisition Corp. I faces delisting from NASDAQ, InvestingPro data provides additional context to the company's financial situation. The company's market capitalization stands at $117.05 million, reflecting its current valuation in the market. Interestingly, APx Acquisition Corp. I has been profitable over the last twelve months, with a basic and diluted EPS from continuing operations of $0.24.
However, the company's financial metrics reveal some challenges. The adjusted P/E ratio is notably high at 618.48, suggesting that investors are paying a premium for the company's earnings. This aligns with an InvestingPro Tip indicating that the stock is trading at a high earnings multiple. Additionally, the company's operating income and EBIT for the last twelve months both stand at -$1.87 million, highlighting operational difficulties.
On a positive note, APx Acquisition Corp. I has shown a year-to-date price total return of 6.01%, outperforming its 1-year return of 4.05%. This suggests some recent positive momentum despite the delisting news.
For investors seeking a deeper understanding of APx Acquisition Corp. I's financial health and market position, InvestingPro offers 8 additional tips not covered here. These insights could prove valuable in navigating the company's transition off the NASDAQ exchange.
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