ENGLEWOOD, Colo. - XTI Aerospace, Inc. (NASDAQ:XTIA), a company specializing in advanced aircraft design, has initiated a public offering of over 363 million shares of its common stock at $0.055 per share. According to InvestingPro data, the company's stock currently trades at $0.11, with a market capitalization of approximately $24 million. The sale, which is expected to generate gross proceeds of approximately $20 million before deductions, is slated to close on January 10, 2025, pending customary closing conditions. InvestingPro analysis reveals the company is quickly burning through cash, with a concerning current ratio of 0.46, indicating potential liquidity challenges.
The shares are being offered at-the-market under Nasdaq rules, with ThinkEquity serving as the sole placement agent. XTI Aerospace plans to allocate the net proceeds from this offering to general corporate purposes and working capital.
This offering follows a shelf registration statement on Form S-3, including a base prospectus, filed with the U.S. Securities and Exchange Commission (SEC) on May 31, 2024, and declared effective on June 18, 2024. The terms of the offering will be detailed in a prospectus supplement and accompanying prospectus filed with the SEC.
XTI Aerospace is the parent company of XTI Aircraft Company, which is developing the TriFan 600, a business aircraft with vertical takeoff and landing capabilities akin to a helicopter. In addition, XTI Aerospace's Inpixon (NASDAQ:XTIA) business unit is a leader in real-time location systems technology, providing solutions to enhance productivity and safety in industrial settings. Financial metrics from InvestingPro show the company's challenging position with negative EBITDA of -$19.7 million and an overall weak financial health score.
The press release includes forward-looking statements regarding XTI's product development, technological advantages, and business plans. However, these statements are subject to risks and uncertainties that could cause actual results to differ from expectations.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy the securities in any state or jurisdiction where such an offer would be unlawful. The information in this article is based on a press release statement from XTI Aerospace, Inc.
In other recent news, XTI Aerospace has been at the center of a series of significant financial and structural changes. The company announced a 1-for-250 share consolidation as part of its 2025 strategic initiatives, aimed at bolstering its financial structure and fostering long-term growth. This move is intended to help XTI Aerospace comply with Nasdaq's minimum bid price requirement.
In addition to this, the company has been involved in a series of equity transactions. XTI Aerospace issued common stock shares to Nadir Ali, its former CEO, as payment for a consulting agreement, and to a holder of the company's Series 9 Preferred Stock in exchange for the return and cancellation of preferred stock. The company also issued shares to Streeterville Capital, LLC, and Nadir Ali to settle overdue consulting payments.
Moreover, XTI Aerospace executed an equity exchange, issuing common stock in return for the cancellation of Series 9 Preferred Stock. The company has also made key leadership appointments, with Jennifer Gaines becoming Chief Legal Officer and Tobin Arthur becoming Chief Strategy Officer.
XTI Aerospace is currently engaged in a legal dispute with Chardan Capital Markets LLC. These recent developments reflect XTI Aerospace's ongoing efforts to manage its capital structure and position itself for future growth.
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