XTI Aerospace sets price for $4 million public offering

Published 28/03/2025, 14:26
XTI Aerospace sets price for $4 million public offering

ENGLEWOOD, Colo. - XTI Aerospace, Inc. (NASDAQ:XTIA), a company specializing in advanced aircraft design with a current market capitalization of $8.7 million, announced today the pricing of its public offering. According to InvestingPro data, the company faces significant financial challenges with a concerning current ratio of 0.46, indicating potential liquidity constraints. The offering consists of 2,941,200 shares of common stock or equivalent pre-funded warrants, along with warrants to purchase additional shares, at a combined price of $1.36 per share and associated warrant.

The warrants, set at the same price, will be immediately exercisable and valid for a period of five years from the date of issuance. XTI Aerospace is conducting the offering with the expectation of raising approximately $4 million in gross proceeds before accounting for underwriting discounts and other expenses. The offering is scheduled to close on March 31, 2025, contingent upon standard closing conditions.

The capital raised is intended for general corporate purposes, which includes bolstering the company’s working capital and fully repaying its outstanding secured promissory notes. This funding comes at a crucial time, as InvestingPro analysis shows the company’s EBITDA stands at -$19.72 million, with the stock experiencing a significant decline of -77.12% year-to-date. ThinkEquity is serving as the sole book-running manager for the offering.

Investors can access the offering through a shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) on May 31, 2024, and subsequently declared effective on June 18, 2024. The sale of these securities will adhere strictly to regulations, ensuring no transactions occur in jurisdictions where it would breach local securities laws.

XTI Aerospace is recognized for its development of the TriFan 600, an innovative fixed-wing aircraft with vertical takeoff and landing capabilities akin to a helicopter. This venture is part of the company’s broader efforts in the aviation industry, which also includes its Inpixon business unit specializing in real-time location systems (RTLS) technology.

This press release includes forward-looking statements, which are based on current estimates and assumptions by the company’s management. These statements are not guarantees of future performance, and investors are cautioned that actual results may differ due to various risks and uncertainties. Based on InvestingPro’s Fair Value analysis, the stock appears to be undervalued at current levels, though investors should note there are 13 additional key insights available to subscribers that could help inform investment decisions.

The information in this article is based on a press release statement from XTI Aerospace, Inc.

In other recent news, XTI Aerospace reported preliminary financial results for the year and quarter ending December 31, 2024, estimating quarterly revenue at $1.0 million and annual revenue at $3.2 million. The company also noted operating expenses of $10.6 million for the quarter and $38.9 million annually. A change in the company’s certifying accountant was announced, with CBIZ CPAs P.C. taking over from Marcum LLP. In product development, XTI Aerospace completed the TriFan 600 flight deck mockup, marking a significant milestone for the first quarter of 2025. The company also updated the TriFan 600’s fuel system design, increasing capacity and enhancing performance. The TriFan 600’s engine design was further refined to improve air intake efficiency and exhaust flow. Additionally, XTI Aerospace appointed Archduke Sandor Habsburg-Lothringen to its Corporate Advisory Board, bringing expertise in sustainable energy and telecommunications. These developments reflect XTI’s ongoing commitment to advancing its technology and product offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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