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ENGLEWOOD, CO - XTI Aerospace, Inc., a Nevada-based company specializing in computer programming services, has recently engaged in unregistered sales of equity securities, according to a Form 8-K filed with the Securities and Exchange Commission (SEC) on August 6, 2024.
The company, which trades under the ticker XTIA on The Nasdaq Capital Market, issued 1,667,444 shares of common stock to a holder of the company’s Series 9 Preferred Stock. This transaction took place as part of an exchange agreement dated July 8 and July 23, 2024, with the shares being issued at an effective price per share between $0.3256 and $0.375. In return, 550 shares of Series 9 Preferred Stock, with an aggregate stated value of $577,500, were returned and canceled. The exchange was conducted in accordance with Section 3(a)(9) of the Securities Act, which allows for such transactions without registration under certain conditions.
Additionally, on July 31, 2024, XTI Aerospace entered into an advisory agreement with a third-party advisor, issuing 1,000,000 shares of restricted common stock as compensation for financial advisory and business development services. This issuance was exempt from registration under Section 4(a)(2) and/or Rule 506 of Regulation D of the Securities Act, as it was not a public offering and the recipient was a sophisticated investor.
Following these transactions, as of today, XTI Aerospace has a total of 34,242,861 shares of common stock outstanding. The company's business address is located at 8123 InterPort Blvd., Suite C, Englewood, CO 80112, and it can be reached by phone at (800) 680-7412.
In other recent news, XTI Aerospace has reported multiple significant developments. The company has extended its potential merger deadline with Damon Motors Inc. to September 30, 2024, adjusting terms including consent rights and share issuance. Damon Motors is obligated to issue shares to XTI Aerospace valued at $250,000 based on the initial Nasdaq listing price.
XTI Aerospace has also filed a non-provisional patent application for its TriFan 600 vertical takeoff and landing (VTOL) aircraft, demonstrating its commitment to innovation. In addition, XTI Aerospace has secured a conditional purchase agreement with Mesa Air Group (NASDAQ:MESA), Inc. for up to 100 TriFan 600 aircraft, a deal that could potentially generate approximately $1 billion in revenue.
The company has also formed a strategic partnership with AVX Aircraft Company to expedite the development and certification of the TriFan 600. Furthermore, XTI Aerospace is progressing with a spin-off of its former subsidiary, Grafiti Holding Inc., set to merge with Damon Motors, Inc.
Lastly, XTI Aerospace has welcomed Tensie Axton, a finance expert, to its Board of Directors, expected to bring valuable expertise in capital markets, mergers and acquisitions, investor relations, and strategic planning. These are the recent developments for XTI Aerospace.
InvestingPro Insights
For investors monitoring XTI Aerospace's recent activities, including the unregistered sales of equity securities, it's important to contextualize these corporate actions with the company's financial health and market performance. According to InvestingPro data, XTI Aerospace has a market capitalization of just 6 million USD, reflecting its status as a smaller player in the market. The company's P/E ratio stands at -0.39, indicating that it is not currently profitable. This is further underscored by its negative operating income margin of over -3000%, as of the last twelve months leading up to Q1 2024.
InvestingPro Tips suggest that XTI Aerospace is currently in a challenging position. The stock is considered to be in oversold territory based on its RSI, and it has experienced a significant price drop of over 93% in the past six months. Additionally, the company is quickly burning through cash and its short-term obligations exceed its liquid assets, which could raise concerns about its financial sustainability. For those considering investment opportunities, these insights are crucial for understanding the risks associated with XTI Aerospace. For a more comprehensive analysis, there are over 14 additional InvestingPro Tips available, providing in-depth guidance on the company's financial metrics and stock performance.
Investors can explore these metrics further and access additional InvestingPro Tips by visiting the dedicated InvestingPro page for XTI Aerospace at https://www.investing.com/pro/XTIA.
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