CXApp Inc. has announced the issuance of 10,028,891 shares of its common stock to Avondale Capital, LLC, under two prepaid purchase agreements dated March 26, 2025, and August 7, 2025. The shares were issued at various prices ranging from $0.156793 to $0.199381 per share on multiple dates in February and March 2026. This transaction was executed in reliance on Section 4(a)(2) of the Securities Act of 1933, indicating that it was not a public offering. The issuance of these shares may lead to dilution of existing shareholders' equity, but it is expected to provide the company with necessary liquidity to support its operations and growth initiatives. The company has also indicated that it is classified as an emerging growth company, which may allow it to take advantage of certain regulatory exemptions. This move is seen as a strategic effort to strengthen its financial position and support future growth plans.

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