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ENGLEWOOD, Colo. - XTI Aerospace, Inc. (NASDAQ: XTIA), a developer of advanced VTOL aircraft, has announced a series of financial and developmental milestones in a recent shareholder update. The company has raised $45 million in gross proceeds through the sale of common stock and has made significant progress on its TriFan 600 aircraft. According to InvestingPro data, the company currently has a market capitalization of $16.51 million and faces significant cash burn challenges.
The capital raise includes $20 million from the sale of common stock at $13.75 per share, following a 1-for-250 reverse stock split, and an additional $25 million raised since the end of the first quarter of 2024. This funding is expected to support the company's growth initiatives and development of the TriFan 600, a fixed-wing aircraft with VTOL capabilities, designed for speeds of 345 mph and a range of 700 miles. InvestingPro analysis reveals the company's current ratio of 0.46, indicating potential liquidity challenges, with short-term obligations exceeding liquid assets.
XTI has also streamlined its capital structure by exchanging and redeeming outstanding preferred stock and warrants. Financially, the company has successfully reduced its total balance sheet liabilities as of December 31, 2024, in comparison to September 30, 2024. Financial health metrics from InvestingPro show an EBITDA of -$19.72 million in the last twelve months, with 14 additional key financial insights available to subscribers.
On the regulatory front, XTI completed a General Familiarization meeting with over 60 FAA representatives, advancing towards the filing of an FAA Type Certification for the TriFan 600. The company released the C211.2 configuration of the aircraft, enhancing its aerodynamic performance and stability.
Additionally, XTI has entered into a non-binding agreement to acquire an equity interest in ReadyMonitor, an AI-powered autonomous drone company, and has formed a Corporate Advisory Board with industry leaders in technology and aviation.
The company has also launched Hangar X Studios, producing and distributing eleven episodes to highlight its aerospace industry leadership.
The shareholder update concludes with CEO Scott Pomeroy expressing confidence in XTI's position at the "intersection of great innovation and tremendous opportunity," and a commitment to delivering long-term value to shareholders.
This news is based on a press release statement from XTI Aerospace, Inc. The company's forward-looking statements are subject to various risks, uncertainties, and other factors that could cause actual results to differ materially from those projected
In other recent news, XTI Aerospace has gained access to the Frontier supercomputer at the Oak Ridge National Laboratory's Leadership Computing Facility, a move set to expedite the development of its TriFan 600 vertical takeoff and landing (VTOL) aircraft. The company has also initiated a public offering of over 363 million shares of its common stock, aiming to generate approximately $20 million in gross proceeds. Additionally, XTI Aerospace announced a 1-for-250 share consolidation to comply with Nasdaq's minimum bid price requirement.
David Oppenheimer has been appointed to XTI Aerospace's Corporate Advisory Board, bringing over four decades of experience in the development of emerging technologies and national policy. The company also issued common stock shares to Nadir Ali, its former CEO, as payment for a consulting agreement, and to a holder of the company's Series 9 Preferred Stock in exchange for its return and cancellation.
Despite these strategic moves, XTI Aerospace faces significant financial challenges, with a negative EBITDA of $19.72 million and a concerning current ratio of 0.46, indicating potential liquidity challenges, according to InvestingPro analysis. These are the recent developments in XTI Aerospace's ongoing efforts to manage its capital structure and position itself for future growth.
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