XTI Aerospace Secures ~$55M Investment To Boost TriFan Aircraft Production - What's On The Radar?

XTI Aerospace, Inc. XTIA announced a strategic equity investment agreement with FC Imperial Limited, an affiliate of the FinExic Concordia Group, for up to $55 million in convertible preferred stock.

The investment values XTI at $275 million post-money and aims to accelerate the development of its innovative TriFan aircraft.

Anindya Chakraborty, leading the investment structuring for the Investment Consortium, said, “The Trifan is unique and perhaps the most efficient, practical, versatile and commercially viable VTOL aircraft with clear attributes of ushering in a game changing reality to the aviation industry.”

The investment will support several key milestones, including the preliminary and critical design reviews and the assembly of XTI’s first test aircraft.

XTI CEO Scott Pomeroy said, “Assuming the completion of the proposed investment, we believe the additional capital will help accelerate the development of the TriFan through several major milestones including completion of the updated preliminary design review along with launching the critical design review phase in preparation for the assembly of XTI’s Test Aircraft No. 1.”

The $275 million valuation aligns with a fairness opinion provided prior to XTI’s merger with Inpixon. This valuation reflects the progress made since the last capital raise based on a $100 million valuation.

Anindya Chakraborty highlighted the TriFan’s potential for widespread adoption across emerging aviation markets, including India, Southeast Asia, and the Middle East.

The VTOL aircraft is poised to serve diverse applications such as healthcare, emergency services, para-military operations, corporate mobility, and luxury travel.

The agreement details a structured capital distribution process, with convertible preferred stock to be issued up to $55 million, converting to common stock through defined exchange events.

Price Action: XTIA shares are trading lower by 6.31% at $0.4141 at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image: Courtesy of XTI Aerospace, Inc.