XTI Aerospace, Inc., a company specializing in computer programming services, has been notified by The Nasdaq Stock Market LLC that it no longer meets the minimum bid price requirement to remain listed on the exchange. The notice, dated July 9, 2024, was issued after the company's common stock closed below the required $1 per share for 30 consecutive business days starting from May 23, 2024.
The Nasdaq Listing Rule 5550(a)(2) mandates that companies maintain a minimum bid price of $1 per share. XTI Aerospace, which trades under the ticker symbol XTIA on the Nasdaq Capital Market, now has 180 calendar days, until January 6, 2025, to regain compliance with this rule. To achieve this, the company's common stock must maintain a closing bid price of at least $1 per share for at least ten consecutive business days within the given period.
If XTI Aerospace fails to meet the minimum bid price within the 180-day grace period, it may be eligible for an additional 180-day compliance period. This is contingent upon the company meeting all other initial listing standards for the Nasdaq Capital Market, except for the bid price requirement, and providing written notice of its intention to rectify the deficiency, potentially through a reverse stock split.
The notice from Nasdaq does not immediately affect the listing of XTI Aerospace's common stock. The company has expressed its intention to monitor the stock's closing bid price and evaluate options to address the situation should the share price remain under $1.
This development follows a series of name changes for the company, which was formerly known as INPIXON, Sysorex Global, and Sysorex Global Holdings Corp., with the most recent change occurring on March 1, 2017. XTI Aerospace, headquartered in Englewood, Colorado, is led by CEO Scott Pomeroy, who signed the SEC filing on July 12, 2024.
Investors and stakeholders are keeping an eye on the company's response to this challenge as it strives to maintain its standing on the Nasdaq Capital Market.
In other recent news, XTI Aerospace has made significant strides in its business operations. The company has amended its business combination agreement with Damon Motors Inc., extending the potential merger deadline to September 30, 2024. The revised terms require Damon Motors to issue shares to XTI Aerospace, valued at $250,000 based on the initial Nasdaq listing price.
XTI Aerospace has also filed a non-provisional patent application for its TriFan 600 vertical takeoff and landing (VTOL) aircraft, demonstrating its commitment to innovation. This comes alongside 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.
The company has also formed a strategic partnership with AVX Aircraft Company to expedite the development and certification of the TriFan 600. Furthermore, XTI Aerospace is progressing with a spin-off of its former subsidiary, Grafiti Holding Inc., set to merge with Damon Motors, Inc.
In addition, XTI Aerospace has welcomed finance expert Tensie Axton to its Board of Directors, anticipated to bring valuable expertise in capital markets, mergers and acquisitions, investor relations, and strategic planning. These are some of the recent developments from XTI Aerospace.
InvestingPro Insights
As XTI Aerospace faces the challenge of maintaining its Nasdaq listing, real-time data and InvestingPro Tips offer a deeper understanding of the company's financial health. With a market capitalization of just 10.09 million USD, the company's financial metrics reflect its struggles. The P/E ratio, both standard and adjusted for the last twelve months as of Q3 2023, is negative at -0.9 and -0.93 respectively, indicating that the company is not currently profitable. Additionally, the substantial price drop of 89.4% year-to-date as of 2024 signals a severe loss in investor confidence.
Two InvestingPro Tips highlight critical issues: the company operates with a significant debt burden and has short term obligations that exceed its liquid assets. These factors, combined with a high price volatility and the fact that the stock is in oversold territory according to the RSI, suggest that investors should exercise caution. The company's stock has also been impacted severely over the past three to six months, with a price total return of -87.99% over three months and -89.4% over six months.
For investors seeking a comprehensive analysis, there are 12 additional InvestingPro Tips available, which provide valuable insights into XTI Aerospace's financial status and market performance. Readers can unlock these tips and more with an exclusive offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at https://www.investing.com/pro/XTIA.
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