XTI Aerospace prices $20M public offering to advance TriFan 600 development 

XTI Aerospace, a Colorado-based developer of hybrid vertical takeoff and landing aircraft, has priced a public stock offering that is intended to raise another $20 million to support the development of the TriFan 600, a tiltrotor-style aircraft that the company claims will cruise at more than 300 miles per hour with a range of 1,000 miles. 

On September 12, XTI said it will sell 12.5 million new shares of its stock (or “pre-funded warrants” in place of shares for some investors). Each comes packaged with an option, known as a common warrant, that gives investors the opportunity to buy another share later. The bundle is priced at $1.60. 

For investors, this means that for every $1.60 spent they get one share plus the right to purchase a second share at $2.00 any time in the next five years. If the stock climbs above $2.00 during that period, the warrants could become valuable. If it does not, the warrants may simply expire. 

Shares of XTI Aerospace, which trades on the Nasdaq exchange under the ticker symbol XTIA, sank on the announcement, dropping about 30% in trading on September 12. Stock offerings like this one typically drag prices down, since issuing new shares dilutes the value of shares held by existing investors. 

XTI said the money will go toward day-to-day operational expenses and expansion efforts. A portion of the proceeds from the stock sale will also go toward advancing the TriFan 600, a six-seat aircraft that the company describes as a hybrid between a traditional business jet and a rotorcraft, with the ability to cruise like an airplane and take off and land like a helicopter. 

The company also noted that some funds may be used to acquire businesses or technologies, though it said no specific commitments are currently in place. 

XTI Aerospace is attempting to positioning itself as a player in the emerging advanced air mobility sector, where dozens of companies are racing to commercialize new forms of VTOL aircraft. Many of these projects, often described as eVTOL or xVTOL vehicles, are targeting urban mobility markets, air taxi services, or specialized business aviation niches. 

The TriFan 600 stands out for combining vertical lift with traditional turboshaft engines that would offer the speed and range of a turboprop or light jet with an operating ceiling in cruise flight of 25,000 feet in the comfort of a pressurized cabin. If successful, the aircraft could appeal to travelers seeking point-to-point transportation between city centers without reliance on traditional airports.  In June 2024, Mesa Airlines announced a conditional purchase order for up to 100 Trifan 600s in a deal potentially worth $1 billion at a list price of $10 million per aircraft.  

XTI Aerospace also operates Inpixon, a subsidiary focused on real-time location systems used in factories and industrial settings to enhance efficiency and safety. This diversification, XTI noted, provides the company with a revenue stream beyond aerospace development. 

The announcement comes amid heightened investor interest in advanced aviation technologies. Firms developing electric air taxis, hybrid aircraft, and related systems have attracted billions of dollars in venture and public market funding in recent years. Yet the sector is still very much in its infancy, with certification, production, and market adoption presenting significant hurdles. 

XTI’s offering highlights both the promise and the challenges of this new generation of aircraft. The TriFan 600 remains in development, albeit slowly, with certification and production timelines not yet finalized. Like many would-be market entrants, XTI is reliant on continued investor support to bring its designs to market. 

If the public stock offering closes as expected, XTI will secure welcome capital to continue development of its flagship aircraft and to explore potential strategic opportunities. The funding underscores the company’s commitment to advancing its VTOL vision, while also serving as a reminder of the risks facing innovators in the advanced air mobility space as a whole. The post XTI Aerospace prices $20M public offering to advance TriFan 600 development  appeared first on AeroTime.

Go to Source