ENGLEWOOD, Colo., Jan. 7, 2025
/PRNewswire/ -- XTI Aerospace, Inc. (NASDAQ: XTIA) ("XTI" or
the "Company"), a pioneer in advanced aircraft design, today
provided an update for its shareholders regarding its 2025
strategic initiatives, which includes the implementation of a
1-for-250 consolidation of the Company's common stock, par value
$0.001 per share (the "Common
Stock"), as part of a broader strategy to strengthen its balance
sheet and increase its stock price to not only regain compliance
with Nasdaq's minimum bid price requirement but also to position
the Company for long-term growth and success.
XTI Aerospace believes it is entering a transformative phase in
its development. With the Federal Aviation Administration (FAA)
formalization of the powered-lift category, the Company sees
substantial opportunity to expand its leadership position within
the VTOL industry. XTI views the recent announcement by the FAA
regarding the powered-lift category as a clear sign that a new era
of aviation is underway, and XTI is positioning itself to play an
integral role in the market through strategic development
advances.
During 2024 XTI has been able to make significant improvements
to its balance sheet and cap table structure. As a result, with a
more robust financial platform, XTI believes it will be
well-equipped to raise capital, pursue strategic acquisitions, and
continue to progress its efforts towards enhancing its leadership
position in the VTOL and powered-lift markets. These efforts will
support the Company's vision of becoming a global leader in
aviation development by accelerating its technological and market
footprint.
"We're excited to take this next step as we continue to execute
on our strategy to become a leader in VTOL development within the
powered lift category," said Scott
Pomeroy, Chairman and CEO of XTI Aerospace. "The share
consolidation is a necessary part of our plan to build a solid
foundation that will support our growth initiatives, increase
shareholder value, and enable us to capitalize on the tremendous
potential of the aviation market transformation we believe is
underway."
XTI Aerospace's long-term strategy includes an enhanced focus on
the TriFan 600, its flagship product, while also seeking to expand
its capabilities within the broader powered-lift category. The
Company is building a comprehensive foundation for future growth
and is excited about the significant opportunities ahead.
In connection with the consolidation of the Company's Common
Stock, every two-hundred-fifty (250) shares of its outstanding
Common Stock will automatically be combined into one (1) share of
Common Stock. The Common Stock will begin trading on a
split-adjusted basis with the new CUSIP number 98423K405 on The
Nasdaq Capital Market under the current ticker symbol "XTIA" when
the market opens on January 10, 2025.
The share consolidation was approved by the Company's shareholders
at the Company's 2024 Annual Meeting, held on December 27, 2024.
Any fractional shares resulting from the consolidation will be
rounded up to the nearest whole share of Common Stock. The exercise
prices and the number of shares issuable upon exercise, of the
Company's outstanding stock options and warrants, will be adjusted
in accordance with their respective terms. The number of authorized
shares of Common Stock and the par value per share will remain
unchanged. The share consolidation will affect all shareholders
uniformly and will not affect any shareholder's ownership
percentage of the Company's shares, with the exception of those
holders of fractional shares.
Computershare Trust Company, N.A. ("Computershare"), the
Company's transfer agent, will act as the exchange agent for the
share consolidation. Computershare will provide shareholders of
record with instructions for the exchange of their stock
certificates. Shareholders holding their shares in book-entry form
and/or owning shares via a broker or other nominee will have their
positions automatically adjusted to reflect the share
consolidation, subject to their brokers' particular processes, and
will not be required to take any action in connection with the
share consolidation.
About XTI Aerospace
XTI Aerospace (XTIAerospace.com) (NASDAQ: XTIA) is the parent
company of XTI Aircraft Company, an aviation business based
near Denver, Colorado,
currently developing the TriFan 600, a fixed-wing business aircraft
designed to have the vertical takeoff and landing (VTOL) capability
of a helicopter, speeds of up to 345 mph and a range of
approximately 700 miles, creating an entirely new category – the
vertical lift crossover airplane (VLCA). Additionally, the Inpixon
(inpixon.com) business unit of XTI Aerospace is a leader in
real-time location systems (RTLS) technology with customers around
the world who use the Company's location intelligence solutions in
factories and other industrial facilities to help optimize
operations, increase productivity, and enhance safety. For more
information about XTI Aerospace, please visit XTIAerospace.com and
HangerXStudios.com (an aviation innovation podcast), and follow the
company on LinkedIn, Instagram, X, and YouTube.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains certain "forward-looking statements"
within the meaning of the United States Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act,
and Section 21E of the Exchange Act. All statements other than
statements of historical fact contained in this press release,
including without limitation, statements about the products under
development by XTI, the advantages of XTI's technology, XTI's
customers, plans and strategies are forward-looking statements.
Some of these forward-looking statements can be identified by
the use of forward-looking words, including "believe," "continue,"
"could," "would," "will," "estimate," "expect," "intend," "plan,"
"target," "projects," or the negatives of these terms or variations
of them or similar expressions. All forward-looking statements are
subject to risks, uncertainties, and other factors which could
cause actual results to differ materially from those expressed or
implied by such forward-looking statements. All forward-looking
statements are based upon estimates, forecasts, and assumptions
that, while considered reasonable by XTI Aerospace and its
management, are inherently uncertain, and many factors may cause
the actual results to differ materially from current
expectations. Such risks, uncertainties, and other factors
include, but are not limited to, the Company's ability to meet the
development and commercialization schedule with respect to the
TriFan 600, the Company's ability to secure required
certifications, including FAA certification, for the TriFan 600
and/or any other aircraft the Company develops, changes in laws and
regulations (including FAA regulations) that may impose additional
costs and compliance burdens on the Company's operations, the
Company's ability to obtain adequate financing in the future as
needed, competition, and general economic conditions. In addition,
the Company has requested a hearing before the Nasdaq Hearings
Panel to appeal Nasdaq's determination to delist the Common Stock
as a result of the Company's non-compliance with Nasdaq Listing
Rule 5810(c)(3)(A)(iii) (the "Low Priced Stock Rule"). At the
hearing, to be held on January 9, 2025, the Company will present
its plan to regain compliance with The Nasdaq Capital Market's
$1.00 minimum bid price requirement, which the Company believes it
will be able to demonstrate through the implementation of the share
consolidation. The Company can provide no assurance that the share
consolidation will result in compliance with the minimum bid price
requirement, or that the Nasdaq Hearings Panel will rule in the
Company's favor. XTI Aerospace undertakes no obligation to revise
any forward-looking statements in order to reflect events or
circumstances that might subsequently arise. Readers are urged to
carefully review and consider the risk factors discussed from time
to time in XTI Aerospace's filings with the SEC, including those
factors discussed under the caption "Risk Factors" in its most
recent annual report on Form 10-K, filed with the SEC on April 16,
2024, and in subsequent reports filed with or furnished to the
SEC.
Contacts
General inquiries:
Email: contact@xtiaerospace.com
Web: https://xtiaerospace.com/contact
Investor Relations:
Crescendo Communications
Tel: +1 212-671-1020
Email: XTIA@crescendo-ir.com
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SOURCE XTI Aerospace, Inc.