APEX Tech Acquisition To Merge With Interactive Online Entertainment Platform Korai At $3.5B Valuation; Combined Company Will Be Renamed Krflix Group And Trade On NYSE

The Proposed Transaction is expected to close in the first quarter of 2027, subject to approval by shareholders of APEX and Korai, regulatory approval and the satisfaction or waiver of certain other customary closing conditions.

Korai Background

Korai launched its interactive online entertainment platform in June 2024. Purpose-built and continuously enhanced by artificial intelligence ("AI") to meet the evolving entertainment needs of users worldwide, Korai’s platform offers AI-powered interactive content experiences, including AI short dramas and AI companion avatars, and features a suite of AI-powered content creation tools to create such content in various visual styles. As of June 30, 2026, Korai had approximately 26.0 million registered users from 15 countries or regions in Asia, namely India, Indonesia, Bangladesh, Japan, the Philippines, Vietnam, South Korea, Thailand, Malaysia, Myanmar, Singapore, Laos, Cambodia, Hong Kong, and Taiwan.

Key Transaction Terms

Under the terms of the Merger Agreement, upon the closing of the Proposed Transaction, a wholly-owned subsidiary of APEX will merge with and into Korai, with Korai continuing as the surviving corporation and a wholly-owned subsidiary of APEX (the "Merger"). The Merger Agreement also provides that prior to the effective time of the Merger, APEX shall continue out of the Cayman Islands and into the State of Delaware so as to re-domicile as and become a Delaware corporation, and shall change its name to "Krflix Group Inc." or such other name as parties may agree.

In connection with the Proposed Transaction, (i) APEX shareholders will receive the same number of shares of Class A common stock of the Combined Company, and (ii) all issued and outstanding shares of Korai’s Class A common stock and Class B common stock will be converted into the right to receive the merger consideration in Class A common stock ("Class A Common Stock") and Class B common stock ("Class B Common Stock") of the Combined Company, respectively, with each Class A Common Stock carrying one vote per share and each Class B Common Stock carrying twenty (20) votes per share.

The Proposed Transaction values Korai at $3.5 billion on a pre-money equity basis and contains no minimum cash condition.

The boards of directors of Korai and APEX have unanimously approved the Proposed Transaction. The closing of the Proposed Transaction is subject to the approval by shareholders of APEX and Korai, regulatory approval and the satisfaction or waiver of certain other customary closing conditions. No assurance can be given that the Proposed Transaction will be completed on the terms or timeframe currently contemplated, or at all.