Investment Expected to Significantly
Accelerate Development of Revolutionary TriFan 600 Long-Range
Civilian Fixed-Wing VTOL Business Aircraft, if Successfully
Consummated
ENGLEWOOD, 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.
Mr. 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."
Scott 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."
Mr. 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 raise,
which was based on a $100 million
valuation."
Mr. Chakraborty added that "The Trifan represents traditional
time-tested stability, hyper-boosted with intelligent innovation
and we believe its elegant, utilitarian, cross purpose design is
expected to fill up the skies across multiple geographies,
including in the emerging aviation markets and some of the fastest
growing economies like India,
SE Asia and Middle East. It is a bold statement for a new
segment in the aviation industry and with its unparalleled blend of
speed and long-range VTOL capabilities, we feel the TriFan is
uniquely positioned to achieve widespread global adoption. It is
tailored for a broad spectrum of applications, from critical
healthcare and emergency services to para-military operations,
elite corporate mobility, and the ultimate aspirational luxury for
enthusiasts. The Investment Consortium is willing to work with XTIA
to provide more capital and help facilitate additional raises as
milestones are met."
Proposed material terms of Investment
The parties have entered into an agreement which stipulates a
structured process for the distribution of capital within a defined
time frame at the Locked Valuation of $275
million and issuance of convertible preferred stock for an
investment up to $55 million which
will convert into common stock through defined exchange events
subject to execution of a definitive purchase agreement.
Further details of the proposed investment will be included in
the Current Report on Form 8-k which will be filed by the Company
with the Securities and Exchange Commission.
About XTI Aerospace, Inc.
XTI Aerospace (XTIAerospace.com) is the parent company of XTI
Aircraft Company (XTIAircraft.com), an aviation business based near
Denver, Colorado, currently
developing the TriFan 600, a fixed-wing business aircraft
designed to have the vertical takeoff and landing (VTOL) capability
of a helicopter, speeds of 345 mph and a range of 700 miles,
creating an entirely new category – the vertical lift crossover
airplane (VLCA). Additionally, the Inpixon (inpixon.com) business
unit of XTI Aerospace is a leader in real-time location systems
(RTLS) technology with customers around the world who use the
Company's location intelligence solutions in factories and other
industrial facilities to help optimize operations, increase
productivity, and enhance safety. For more information about XTI
Aerospace, please visit XTIAerospace.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains certain "forward-looking statements"
within the meaning of the United States Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act,
and Section 21E of the Exchange Act. All statements other than
statements of historical fact contained in this press release,
including without limitation, statements about XTI and FCG entering
into a definitive purchase agreement on the terms described in the
agreement mentioned above, or whether XTI and FCIL or the Investor
Consortium will make any of the contemplated capital contributions,
and statements about the products under development by XTI, the
advantages of XTI's technology, and XTI's customers, plans and
strategies are forward-looking statements.
The proposed Investment is subject to the parties successfully
completing all the processes under the agreement including
execution of a definitive purchase agreement, and there can be no
assurance that such transaction will materialize.
Some of these forward-looking statements can be identified by
the use of forward-looking words, including "believe," "continue,"
"could," "would," "will," "estimate," "expect," "intend," "plan,"
"target," "projects," or the negatives of these terms or variations
of them or similar expressions. All forward-looking statements are
subject to risks, uncertainties, and other factors which could
cause actual results to differ materially from those expressed or
implied by such forward-looking statements. All forward-looking
statements are based upon estimates, forecasts, and assumptions
that, while considered reasonable by XTI Aerospace and its
management, are inherently uncertain, and many factors may cause
the actual results to differ materially from current expectations.
XTI undertakes no obligation to revise any forward-looking
statements in order to reflect events or circumstances that might
subsequently arise. Readers are urged to carefully review and
consider the risk factors discussed from time to time in XTI's
filings with the SEC, including those factors discussed under the
caption "Risk Factors" in its most recent annual report on Form
10-K, filed with the SEC on April 16,
2024, and in subsequent reports filed with or furnished to
the SEC.
Contacts
General inquiries:
Email: contact@xtiaerospace.com
Web: https://xtiaerospace.com/contact/
Investor Relations:
Crescendo Communications
Tel: +1 212-671-1020
Email: XTIA@crescendo-ir.com
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SOURCE XTI Aerospace, Inc.