ENGLEWOOD, CO-based XTI Aerospace, Inc. (NASDAQ:XTIA) recently disclosed unregistered sales of equity securities and other financial activities in a filing with the U.S. Securities and Exchange Commission (SEC).
On Monday, the company issued 18,745,348 shares of common stock to Streeterville Capital, LLC in exchange for 910 shares of Series 9 Preferred Stock, which had an aggregate stated value of $955,500.
This transaction was part of an agreement dated November 18 and 19, 2024, and was conducted in compliance with Section 3(a)(9) of the Securities Act of 1933.
Following this exchange, XTI Aerospace's outstanding common stock totaled 216,493,235 shares as of Tuesday. Additionally, on Tuesday, the company entered into a Restricted Stock Award Agreement with Nadir Ali, a consultant and former CEO and director.
Ali received 21,627,674 fully vested shares at $0.05 per share as part of the company’s 2018 Employee Stock Incentive Plan. This issuance partially settled overdue consulting payments totaling $1,875,000 and amounts owed under the company's Transaction (JO:TCPJ) Bonus Plan.
Furthermore, pursuant to a Consent Agreement dated November 17, 2024, XTI Aerospace made payments on Wednesday totaling $259,878.06 to Streeterville and $86,626.02 to 3AM Investments LLC, controlled by Mr. Ali. These payments were redemption proceeds from sales under the company’s existing ATM agreement from November 7 through 15, 2024, for preferred shares held by the two entities.
The SEC filing indicates that these financial maneuvers are part of XTI Aerospace's broader strategy to manage its equity and fulfill obligations to stakeholders. The information in this report is based on a press release statement and provides a factual summary of the company's disclosed financial transactions without speculation or promotional commentary.
In other recent news, XTI Aerospace has made significant strides in its financial and structural operations. The company recently completed an equity exchange, issuing 5,267,558 shares of common stock in return for the cancellation of 300 shares of Series 9 Preferred Stock. In addition, XTI Aerospace has extended the maturity date for its bridge notes, indicating a shift in its capital structure.
The company has also made key leadership appointments, with Jennifer Gaines stepping into the role of Chief Legal Officer and Tobin Arthur taking on the position of Chief Strategy Officer. These appointments are expected to guide future initiatives for XTI Aerospace.
In a strategic move, XTI Aerospace has entered into a second amendment to its Business Combination Agreement with Damon Motors Inc., introducing new conditions and extending the termination date of the agreement. This development highlights the company's efforts to expand its footprint in the aerospace sector.
Furthermore, XTI Aerospace has filed a non-provisional patent application for its TriFan 600 vertical takeoff and landing aircraft. The company also secured a conditional purchase agreement with Mesa Air Group (NASDAQ:MESA), Inc. for up to 100 TriFan 600 aircraft, which could potentially generate approximately $1 billion in revenue.
Lastly, XTI Aerospace is currently involved in a legal dispute with Chardan Capital Markets LLC over compensation claims. These are some of the recent developments at XTI Aerospace.
InvestingPro Insights
XTI Aerospace's recent financial activities, as disclosed in their SEC filing, can be better understood in light of some key financial metrics and insights from InvestingPro. The company's market capitalization stands at a modest $1.93 million, reflecting its current position in the market.
InvestingPro Tips highlight that XTI Aerospace is "quickly burning through cash" and that "short term obligations exceed liquid assets." These insights align with the company's recent equity transactions, which appear to be efforts to manage its financial obligations and liquidity position.
The stock's performance has been notably weak, with InvestingPro data showing a 1-year price total return of -98.69% as of the latest available data. This significant decline is consistent with the InvestingPro Tip that the "stock has taken a big hit over the last six months."
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for XTI Aerospace, providing a deeper understanding of the company's financial health and market position.
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