XTI Aerospace Provides Shareholder Update
Rhea-AI Summary
XTI Aerospace (NASDAQ: XTIA) has provided a shareholder update highlighting key developments in 2024. The company successfully raised $45 million in total gross proceeds through stock offerings, with $20 million raised at $13.75 per share (post 1-for-250 reverse stock split) and an additional $25 million through at-the-market offerings.
The company reported reducing its balance sheet liabilities as of December 31, 2024, compared to September 30, 2024, and streamlined its capitalization structure. Technical achievements include completing a General Familiarization meeting with the FAA, releasing the C211.2 configuration of the TriFan 600 aircraft, and making progress on aircraft systems and design elements ahead of FAA Type Certification.
Other developments include entering a non-binding agreement to acquire equity in ReadyMonitor AI drone company, forming a Corporate Advisory Board, and launching Hangar X Studios, which has produced eleven episodes.
Positive
- Raised $45 million in gross proceeds through stock offerings
- Reduced balance sheet liabilities (Q4 vs Q3 2024)
- Streamlined capitalization structure through exchange of preferred stock and warrants
- Advanced TriFan 600 development with new C211.2 configuration
- Completed FAA General Familiarization meeting with 60+ representatives
Negative
- Significant shareholder dilution through multiple stock offerings
- Non-binding status of ReadyMonitor AI acquisition agreement indicates uncertainty
News Market Reaction – XTIA
On the day this news was published, XTIA declined 9.20%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Dear Fellow XTI Aerospace Shareholders –
At the outset, I would like to take a moment to recognize that 2024 was a transformative year for XTI and extend my gratitude for your continued support in 2025 and beyond.
Along with the rest of our management team, I would like to update you on recent accomplishments supportive of our growth including strengthening our balance sheet and improving our overall financial condition, as well as making significant advancements in the development of the TriFan 600.
Business Highlights (Current)
- Raised
$20,000,000 $13.75 - Raised an additional approximately
$25,000,000
Under the offering terms, we have a standstill in place with respect to use of the ATM
- Reduced total balance sheet liabilities as of December 31, 2024 when compared to total liabilities as of September 30, 2024
- Streamlined our capitalization structure through the exchange for common stock and redemption of outstanding preferred stock and warrants
- Completed General Familiarization (Gen Fam) meeting with the Federal Aviation Administration (FAA) attended by more than 60 FAA representatives
- Released C211.2 configuration of Tri Fan 600 aircraft, enhancing aerodynamic performance and stability
- Made substantial progress with details of the aircraft including systems, structures, flight deck, cabin layout, and drivetrain, among other design items, in anticipation of the filing of our FAA Type Certification
- Advanced relationships with critical vendors
- Announced entry into non-binding agreement to acquire equity interest in ReadyMonitor AI-powered, autonomous drone company
- Formed Corporate Advisory Board of industry leaders in technology and aviation
- Launched Hangar X Studios to highlight our aerospace industry leadership and produced and distributed eleven episodes
In my view, XTI Aerospace is positioned at the intersection of great innovation and tremendous opportunity. The business climate is highly favorable for execution, and we are firmly focused on delivering long-term value. We are grateful for you, our shareholders; your support is critical to our success.
Respectfully,
/s/ Scott Pomeroy
Chief Executive Officer
About XTI Aerospace, Inc.
XTI Aerospace, Inc. (XTIAerospace.com) (NASDAQ: XTIA) is the parent company of XTI Aircraft Company, an aviation business based near
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. While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change.
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 and its management, are inherently uncertain, and many factors may cause the actual results to differ materially from current expectations, which include, but are not limited to: the inability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities, including the inability to successfully negotiate and enter into definitive agreements with ReadyMonitor; the risk that, even if XTI enters into definitive agreements with ReadyMonitor, the transaction may not be completed in a timely manner or at all, which may adversely affect the price of XTI's securities;; the outcome of XTI's January 9, 2025, hearing before a Nasdaq Hearings Panel to appeal Nasdaq's determination to delist XTI's common stock, including the risk that Nasdaq does not grant XTI additional time to regain compliance with the Nasdaq Capital Market's
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.