XTI Aerospace today announced that it has entered into an agreement with FC Imperial Limited, an affiliate of a private global investment consortium, FinExic Concordia Group, for a proposed strategic equity investment for shares of convertible preferred stock of up to USD55 million at a post-money valuation of USD275 million, with the successful consummation of the entire transaction process, said XTI in a press statement.
Anindya Chakraborty, leading the investment structuring for the investment consortium, said: “For well over a year, extensive discussions were held with XTI management and XTI engineering team along with review of sector trends and technologies being developed. 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.”
Scott Pomeroy, chairman and CEO of XTI, stated, “XTI has had the pleasure of working with and sharing information with the investment team for over a year, and they have performed extensive technical and financial due diligence on XTI Aircraft Company and the TriFan. 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. Importantly, we also believe that our relationship with the Investor Consortium, which is a true collaboration of values and vision, aligns the long-term interests of both organizations.”
According to Pomeroy: “The USD275 million valuation aligns with the fairness opinion delivered to the Inpixon Board of Directors prior to Inpixon’s merger with XTI Aircraft Company. This valuation reflects the progress we have made, especially since our last private company capital raise, which was based on a USD100 million valuation.”
The parties have entered into an agreement which stipulates a structured process for the distribution of capital within a defined time frame at the Locked Valuation of USD275 million and issuance of convertible preferred stock for an investment up to USD55 million which will convert into common stock through defined exchange events subject to execution of a definitive purchase agreement.
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