XTI Aerospace Shares Are On The Rise Today: What's Going On?

XTI Aerospace Inc. XTIA shares are trading higher Tuesday after the company announced its 2025 strategic initiatives aimed at strengthening its leadership in the VTOL (Vertical Take-Off and Landing) and powered-lift aircraft markets.

What To Know: XTI Aerospace revealed plans for a 1-for-250 reverse stock split, which is set to take effect on Jan. 10, 2025. The reverse split, approved by shareholders during XTI's 2024 Annual Meeting on Dec. 27, 2024, will consolidate every 250 shares of common stock into a single share. The stock will trade under the adjusted CUSIP number 98423K405.

Fractional shares resulting from the split will be rounded up to the nearest whole share and authorized shares and par value per share will remain unchanged. This consolidation is intended to boost XTI's stock price to meet Nasdaq’s minimum bid price requirement and position the company for long-term growth.

Chairman and CEO Scott Pomeroy described the share consolidation as a necessary step to support the company's broader initiatives and capitalize on the FAA's recognition of the powered-lift category. He emphasized that this development marks a transformative era for the aviation industry, with XTI aiming to solidify its role as a leader in VTOL and powered-lift innovation.

XTI also highlighted its progress in 2024, including improvements to its balance sheet and capital structure. The company stated these changes have created a more stable financial platform to pursue strategic acquisitions, raise additional capital and expand its technological and market footprint.

The company reiterated its focus on the TriFan 600, its flagship product and its plans to leverage growth opportunities within the powered-lift market. XTI stated that it is building a comprehensive foundation to accelerate its development efforts and establish itself as a global leader in aviation.

XTIA Price Action: XTI Aerospace shares closed Tuesday up 29.66% at 11 cents, according to Benzinga Pro.

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Photo Credits: Courtesy of XTI Aerospace, Inc.