XTI Aerospace, Inc. has amended its business combination agreement with Damon Motors Inc., extending the potential merger deadline to September 30, 2024. The amendment, filed today with the SEC, adjusts terms including consent rights and share issuance.
ENGLEWOOD, CO – XTI Aerospace, Inc., a company specializing in computer programming services, announced an amendment to its previously disclosed business combination agreement with Damon Motors Inc., a British Columbia corporation. The amendment, signed on Monday, grants certain consent rights to Grafiti Holding Inc. and extends the termination date of the original agreement from March 31, 2024, to September 30, 2024.
Under the revised terms, Damon Motors is required to issue shares to XTI Aerospace that, upon exchange for Spinco Common Shares, will value at $250,000 based on the initial Nasdaq listing price. These shares will be included in Spinco's first resale registration statement filed after the closing date. Additionally, certain items, including these shares, will be excluded from the definitions of Spinco Fully Diluted Shares and Company Fully Diluted Shares in the Combination Agreement.
Furthermore, XTI Aerospace has agreed to amendments regarding its investment in Damon Motors made in October 2023. The amendments include an extension of the maturity date of the Bridge Notes to September 30, 2024, and a revision of the definition of Permitted Indebtedness to accommodate increased indebtedness limits and the inclusion of Grafiti Indebtedness. The exercise price of the Bridge Note Warrants is amended to $2.7364, and certain provisions relating to liquidated damages and full ratchet price protection have been removed.
In other recent news, XTI Aerospace has been at the forefront of various significant developments. The company recently filed a non-provisional patent application for its TriFan 600 vertical takeoff and landing (VTOL) aircraft, underscoring its commitment to innovation. XTI Aerospace also secured a conditional purchase agreement with Mesa Air Group (NASDAQ:MESA), Inc. for up to 100 TriFan 600 aircraft, a deal that could potentially generate approximately $1 billion in revenue.
XTI Aerospace has also formed a strategic partnership with AVX Aircraft Company to expedite the development and certification of the TriFan 600. The company is advancing a spin-off of its former subsidiary, Grafiti Holding Inc., set to merge with Damon Motors, Inc. The distribution of Grafiti shares is contingent on the registration statement becoming effective, with 80% of the distributed shares subject to lock-up restrictions.
In addition, XTI Aerospace has welcomed Tensie Axton, a finance expert, to its Board of Directors. Axton's addition is expected to bring valuable expertise to the company, particularly in capital markets, mergers and acquisitions, investor relations, and strategic planning. These are among the recent developments for XTI Aerospace.
InvestingPro Insights
In light of XTI Aerospace's recent business combination agreement amendment with Damon Motors, it's crucial for investors to consider the company's financial health and market performance. According to InvestingPro data, XTI Aerospace currently has a market capitalization of $7.89 million and is facing significant financial challenges, as evidenced by its negative P/E ratio of -0.73 for the last twelve months as of Q3 2023. Additionally, the company's operating income reflects substantial losses of $9.86 million for the same period.
Investors should note that XTI Aerospace's stock has experienced a remarkable decline, with a 1-month price total return of -56.95% and a 6-month price total return of -89.11%. This trend is further highlighted by the stock's current price being just 1.05% of its 52-week high. InvestingPro Tips suggest that the stock is currently in oversold territory and has been trading with high price volatility, which could indicate potential opportunities for investors looking for entry points in a distressed asset, albeit with a high-risk profile.
For those interested in a deeper analysis, InvestingPro offers additional tips, including insights into the company's cash burn rate and short-term obligations. With these considerations in mind, investors can make more informed decisions by leveraging the comprehensive resources available on InvestingPro. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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