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XTI Aerospace Signs Capital Distribution Agreement for Proposed Investment of up to $55 Million at $275 Million Valuation
Investment Expected to Significantly Accelerate Development of Revolutionary TriFan 600 Long-Range Civilian Fixed-Wing VTOL Business Aircraft, if Successfully
About this update from Xti Aerospace, Inc.
[{"type":"text","content":"Investment Expected to Significantly Accelerate Development of Revolutionary TriFan 600 Long-Range Civilian Fixed-Wing VTOL Business Aircraft, if Successfully Consummated\nENGLEWOOD, Colo., July 1, 2024 /PRNewswire/ -- XTI Aerospace, Inc. (NASDAQ: XTIA) (\"XTI\" or the \"Company\") today announced that it has entered into an agreement with FC Imperial Limited (\"FCIL\"), an affiliate of a private global investment consortium, FinExic Concordia Group, (\"FCG\" or \"Investor Consortium\"), for a proposed strategic equity investment for shares of convertible preferred stock (the \"Investment\") of up to $55 million (the \"Maximum Amount\") at a post-money valuation of $275 million (the \"Locked Valuation\"), with the successful consummation of the entire transaction process.\n\n \n \n \n \n \n \n\n \nMr. Anindya Chakraborty, leading the investment structuring for the Investment Consortium, said \"For well over a year, extensive discussions were held with XTI management and XTI engineering team along with review of sector trends and technologies being developed. The Trifan is unique and perhaps the most efficient, practical, versatile and commercially viable VTOL aircraft with clear attributes of ushering in a game changing reality to the aviation industry.\"\nScott Pomeroy, chairman and CEO of XTI, stated, \"XTI has had the pleasure of working with and sharing information with the investment team for over a year, and they have performed extensive technical and financial due diligence on XTI Aircraft Company and the TriFan. Assuming the completion of the proposed investment, we believe the additional capital will help accelerate the development of the TriFan through several major milestones including completion of the updated preliminary design review along with launching the critical design review phase in preparation for the assembly of XTI's Test Aircraft No. 1. Importantly, we also believe that our relationship with the Investor Consortium, which is a true collaboration of values and vision, aligns the long-term interests of both organizations.\" \nMr. Pomeroy continued, \"The $275 million valuation aligns with the fairness opinion delivered to the Inpixon Board of Directors prior to Inpixon's merger with XTI Aircraft Company. This valuation reflects the progress we have made, especially since our last private company capital ra...