XTI Aerospace, Inc., a company specializing in computer programming services, has completed an unregistered issuance of equity securities, according to a Form 8-K filed with the Securities and Exchange Commission on Friday, November 1, 2024. The transaction involved the issuance of 5,267,558 shares of common stock in exchange for the return and cancellation of 300 shares of the company's Series 9 Preferred Stock.
The exchange, which occurred on Thursday, October 31, 2024, was conducted with a single holder of the Series 9 Preferred Stock. The common stock was issued at an effective price per share of $0.0598, valuing the preferred shares at an aggregate stated value of $315,000. This transaction was carried out under an exchange agreement dated the same day.
The company utilized the exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, as amended. This exemption is applicable since the common shares were exchanged for other outstanding securities of the company, no additional consideration was provided by the holder, and no commissions or remuneration were paid in connection with the exchange.
Following the issuance of the Preferred Exchange Shares, XTI Aerospace's total outstanding common stock amounts to 86,308,782 shares. The company, with its principal executive offices located in Englewood, Colorado, is listed on The Nasdaq Capital Market under the trading symbol XTIA.
The information for this report is sourced from the company's SEC filing, which provides an official account of the company's financial transactions and adherence to regulatory requirements.
In other recent news, XTI Aerospace has been busy with several significant developments. The company has witnessed changes in leadership with the appointment of Jennifer Gaines as Chief Legal Officer and Tobin Arthur as Chief Strategy Officer. Their combined experience in legal and strategic roles respectively is expected to guide XTI Aerospace's future initiatives.
In terms of financial adjustments, XTI Aerospace has issued new shares as part of an exchange agreement with a preferred stockholder and extended the maturity date for its bridge notes. These actions reflect ongoing efforts in managing the company's capital structure.
On the merger front, XTI Aerospace has entered into a second amendment to its Business Combination Agreement with Damon Motors Inc., introducing new conditions and extending the termination date of the agreement. This strategic move is expected to expand XTI Aerospace's footprint in the aerospace sector.
In product development, XTI Aerospace has filed a non-provisional patent application for its TriFan 600 vertical takeoff and landing aircraft. The company has also secured a conditional purchase agreement with Mesa Air Group (NASDAQ:MESA), Inc. for up to 100 TriFan 600 aircraft, a move that could potentially generate approximately $1 billion in revenue.
Lastly, the company finds itself in a legal dispute with Chardan Capital Markets LLC over compensation claims. These are the recent developments for XTI Aerospace.
InvestingPro Insights
XTI Aerospace's recent equity transaction occurs against a backdrop of significant financial challenges, as revealed by InvestingPro data. The company's market capitalization stands at a modest $2.25 million, reflecting its current struggles. This aligns with several InvestingPro Tips, including that the stock "has taken a big hit over the last week" with a 1-week price total return of -32.75%, and has "fallen significantly over the last year" with a 1-year price total return of -98.35%.
The company's financial health appears precarious, with InvestingPro data showing an operating income of -$17.45 million for the last twelve months as of Q2 2024. This corresponds with the InvestingPro Tip that XTI Aerospace is "not profitable over the last twelve months" and is "quickly burning through cash." These insights provide crucial context to the recent equity issuance, suggesting it may be part of broader efforts to manage the company's financial position.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for XTI Aerospace, providing a deeper understanding of the company's financial situation and market performance.
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