XTI Aerospace (NASDAQ: XTIA) stock plunged in pre-market trading Tuesday after the company inked a $55 million investment deal with FC Imperial Limited.
XTI Aerospace revealed that it has entered into a strategic equity investment agreement with FC Imperial Limited, an affiliate of the FinExic Concordia Group. Through this agreement, FC Imperial Limited will invest up to $55 million in convertible preferred stock in XTI Aerospace.
This investment values XTI Aerospace at $275 million post-money and aims to accelerate the development of its innovative TriFan aircraft.
Anindya Chakraborty, overseeing the investment structuring for the Investment Consortium, emphasized the TriFan’s potential to revolutionize the aviation industry. He described it as “the most efficient, practical, versatile, and commercially viable VTOL aircraft.”
The investment will support pivotal milestones in XTI’s roadmap, including preliminary and critical design reviews, and the assembly of the company’s first test aircraft.
XTI CEO Scott Pomeroy said,
“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.”
The $275 million valuation aligns with a fairness opinion provided before XTI’s merger with Inpixon, indicating progress since the last capital raise at a $100 million valuation.
Anindya Chakraborty emphasized that the TriFan has significant potential for adoption across emerging aviation markets in India, Southeast Asia, and the Middle East. The company has designed VTOL aircraft to cater to various applications including healthcare, emergency services, para-military operations, corporate mobility, and luxury travel.
The agreement outlines a structured capital distribution process, issuing up to $55 million in convertible preferred stock that will convert to common stock through defined exchange events.
XTI Aerospace (NASDAQ: XTIA) Stock Movement
As of 08:05 a.m. (Eastern Time) Tuesday, XTIA stock traded at $0.3725, marking a 6.88% decrease compared to the previous trading session.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
