Korai Flix to Merge with APEX Tech in $3.5 Billion Deal

Korai Flix Inc. and APEX Tech Acquisition Inc. (NYSE: TRAD) entered into a definitive agreement on October 20, 2026, to merge and form a publicly listed entity named Krflix Group Inc. The transaction values Korai at $3.5 billion on a pre-money equity basis and includes no minimum cash condition. Upon closing, the combined company's Class A common stock is expected to be listed on the New York Stock Exchange, subject to meeting listing requirements.

The merger is structured such that a wholly-owned subsidiary of APEX will merge with and into Korai, leaving Korai as the surviving corporation and a wholly-owned subsidiary of APEX. Prior to the merger's effective time, APEX will re-domicile from the Cayman Islands to Delaware. Shareholders of APEX will receive an equal number of shares of the Combined Company's Class A common stock. Korai's existing Class A and Class B shares will convert into corresponding shares of the Combined Company, with Class A shares carrying one vote per share and Class B shares carrying twenty votes per share.

Korai operates an interactive online entertainment platform that launched in June 2024. The platform utilizes artificial intelligence to provide interactive content experiences, including AI short dramas and companion avatars, along with tools for content creation in various visual styles. As of June 30, 2026, the company reported approximately 26.0 million registered users across 15 Asian countries or regions, spanning markets from India and Indonesia to Japan and South Korea.

The proposed transaction is expected to close in the first quarter of 2027, contingent upon approval by shareholders of both APEX and Korai, regulatory approval, and the satisfaction or waiver of other customary closing conditions. The boards of directors for both companies have unanimously approved the deal. The companies noted that no assurance can be given that the transaction will be completed on the current terms or timeframe, or at all.

APEX Tech Acquisition Inc. is a blank check company sponsored by APEX Innovation Acquisition Corp. and led by Director Shaoren Liu. The company was organized to effect a merger or other business combination. A Current Report on Form 8-K will be filed with the Securities and Exchange Commission to provide additional details, including a copy of the Merger Agreement. APEX also intends to file a registration statement on Form S-4 containing a proxy statement/prospectus.