XTI Aerospace Announces Closing of $16 Million Public Offering

Rhea-AI Summary

XTI Aerospace (Nasdaq: XTIA), a pioneer in xVTOL and powered-lift aircraft solutions, has successfully closed a $16 million public offering. The offering consisted of 9,143,000 shares of common stock (or pre-funded warrants) and warrants to purchase up to 9,143,000 shares at a combined price of $1.75 per share.

The Common Warrants are immediately exercisable at $2.00 per share and expire in five years. The company plans to use the proceeds for working capital and general corporate purposes, including the development of their TriFan 600 airplane. ThinkEquity served as the sole book-running manager for the offering.

Positive

• Secured $16 million in gross proceeds to fund operations and development
• Warrants priced at $2.00 per share, representing a 14.3% premium to the offering price

Negative

• Significant dilution for existing shareholders with 9.14 million new shares
• Additional dilution possible through warrant exercises and over-allotment option

Insights

Financial Analyst

XTI Aerospace raised $16M through public offering to fund TriFan 600 development, but dilution concerns and offering price below warrant exercise price indicate potential challenges.

XTI Aerospace has successfully closed a $16 million public offering, providing critical capital for its innovative vertical takeoff and landing (xVTOL) aircraft programs. The offering consisted of 9,143,000 shares of common stock (or pre-funded warrants) and warrants to purchase an additional 9,143,000 shares, with 1,371,000 extra warrants sold through the underwriter's over-allotment option.

The structure of this offering reveals several important financial dynamics. First, the $1.75 per share price contrasts with the $2.00 warrant exercise price, creating a potential 14.3% premium if warrants are exercised. However, this structure also points to significant dilution for existing shareholders, as the offering could potentially introduce over 18 million new shares into the market if all warrants are exercised.

The capital raised is explicitly earmarked for working capital and the development of the company's flagship TriFan 600 aircraft, suggesting the company needed this cash infusion to continue operations and product development. The involvement of ThinkEquity as the sole book-runner indicates this was a smaller-scale offering typical of early-stage aerospace companies.

For a company developing capital-intensive aerospace technology, $16 million provides runway but may not be sufficient for complete product commercialization. The fact that they included warrants rather than raising all capital through direct equity suggests possible challenges in attracting investors at higher valuations. This financing approach balances immediate capital needs while offering investors potential upside through warrants, though it comes at the cost of potential future dilution.

ENGLEWOOD, Colo., June 26, 2025 /PRNewswire/ -- XTI Aerospace, Inc. (Nasdaq: XTIA) ("XTI" or the "Company"), a pioneer in xVTOL and powered-lift aircraft solutions, today announced the closing of its underwritten public offering of 9,143,000 shares of common stock (or pre-funded warrants ("Pre-Funded Warrants") in lieu thereof) and warrants to purchase up to 9,143,000 shares of common stock (the "Common Warrants") at a combined public offering price of $1.75 per share (inclusive of the Pre-Funded Warrant exercise price) and accompanying Common Warrant, and an additional 1,371,000 Common Warrants sold upon exercise of the underwriter's over-allotment option, for gross proceeds of approximately $16 million, before deducting underwriting discounts and offering expenses. Each Common Warrant is immediately exercisable, entitles the holder to purchase one share of common stock at an exercise price of $2.00 per share, and expires five years from the date of issuance. The shares of common stock (or Pre-Funded Warrants in lieu of such shares) and Common Warrants were purchased together in the offering but were issued separately. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 1,371,000 shares of common stock and/or Pre-Funded Warrants or any combination thereof to cover over-allotments at the public offering price, less the underwriting discount.

The Company intends to use the net proceeds from the offering for working capital and other general corporate purposes, including the development of the TriFan 600 airplane.

ThinkEquity acted as the sole book-running manager for the offering.

A registration statement on Form S-1 (File No. 333-287989) relating to the securities was filed with the Securities and Exchange Commission ("SEC") and became effective on June 24, 2025. This offering was made only by means of a prospectus. Copies of the final prospectus may be obtained from ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004.  The final prospectus has been filed with the SEC and is available on the SEC's website located at http://www.sec.gov.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About XTI Aerospace, Inc. 
XTI Aerospace (XTIAerospace.com) (Nasdaq: XTIA) is the parent company of XTI Aircraft Company, 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, maximum cruising speeds of over 300 mph and a range of over 1,000 miles, creating an entirely new category – the xVTOL. 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, please visit XTIAerospace.com and follow XTI on LinkedIn, Instagram, X, and YouTube.

Forward Looking Statements 
This press release contains "forward-looking statements" that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements, including without limitation, statements regarding XTI's anticipated use of net proceeds from the offering. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will" "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. 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 15, 2025, 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: 
Dave Gentry, CEO 
RedChip Companies, Inc. 
Phone: 1-407-644-4256 
Email: XTIA@redchip.com 

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SOURCE XTI Aerospace, Inc.

FAQ

How much did XTI Aerospace (XTIA) raise in their June 2025 public offering?

XTI Aerospace raised $16 million in gross proceeds through an offering of 9,143,000 shares of common stock and warrants at $1.75 per share.

What is the exercise price of XTIA's Common Warrants from the June 2025 offering?

The Common Warrants have an exercise price of $2.00 per share and are exercisable immediately with a five-year expiration period.

How will XTI Aerospace use the proceeds from their $16M offering?

XTI Aerospace plans to use the net proceeds for working capital, general corporate purposes, and the development of their TriFan 600 airplane.

What was the price per share for XTI Aerospace's June 2025 public offering?

The combined public offering price was $1.75 per share, which included one share of common stock (or pre-funded warrant) and one Common Warrant.

Who was the underwriter for XTI Aerospace's June 2025 public offering?

ThinkEquity acted as the sole book-running manager for the offering.