XTI Aerospace Updates Shareholders on 2025 Strategy to Strengthen Leadership in Aviation Innovation and Announces Share Consolidation
XTI Aerospace (NASDAQ: XTIA) has announced a strategic update for 2025, including a 1-for-250 share consolidation of its common stock. The consolidation, effective January 10, 2025, aims to regain Nasdaq compliance and strengthen the company's position for long-term growth.
Following improvements to its balance sheet and cap table structure in 2024, XTI plans to raise capital and pursue strategic acquisitions. The company is focusing on expanding its leadership in the VTOL industry, particularly with its flagship product, the TriFan 600, following the FAA's formalization of the powered-lift category.
The share consolidation will maintain shareholders' ownership percentages, with fractional shares rounded up. Outstanding stock options and warrants will be adjusted accordingly, while the number of authorized shares and par value remain unchanged. Computershare will manage the exchange process for shareholders of record.
XTI Aerospace (NASDAQ: XTIA) ha annunciato un aggiornamento strategico per il 2025, inclusa una consolidazione delle azioni ordinarie in un rapporto di 1 a 250. La consolidazione, che avrà effetto dal 10 gennaio 2025, mira a ripristinare la conformità con Nasdaq e a rafforzare la posizione dell'azienda per una crescita a lungo termine.
Dopo aver migliorato il proprio bilancio e la struttura del capitale nel 2024, XTI prevede di raccogliere capitali e perseguire acquisizioni strategiche. L'azienda si sta concentrando sull'espansione della propria leadership nel settore VTOL, in particolare con il suo prodotto di punta, il TriFan 600, a seguito della formalizzazione da parte della FAA della categoria a sollevamento potenziato.
La consolidazione delle azioni manterrà le percentuali di proprietà degli azionisti, con le azioni frazionarie arrotondate per eccesso. Le opzioni azionarie e i warrant in circolazione saranno adeguati di conseguenza, mentre il numero di azioni autorizzate e il valore nominale rimarranno invariati. Computershare gestirà il processo di scambio per gli azionisti registrati.
XTI Aerospace (NASDAQ: XTIA) ha anunciado una actualización estratégica para 2025, que incluye una consolidación de acciones ordinarias a una relación de 1 por 250. La consolidación, que entrará en vigor el 10 de enero de 2025, tiene como objetivo restaurar el cumplimiento con Nasdaq y fortalecer la posición de la empresa para un crecimiento a largo plazo.
Luego de mejorar su balance y la estructura de capital en 2024, XTI planea levantar capital y buscar adquisiciones estratégicas. La empresa se enfoca en expandir su liderazgo en la industria VTOL, particularmente con su producto insignia, el TriFan 600, tras la formalización de la categoría de elevación de potencia por parte de la FAA.
La consolidación de acciones mantendrá los porcentajes de propiedad de los accionistas, con acciones fraccionarias redondeadas hacia arriba. Las opciones de acciones y los warrants en circulación se ajustarán en consecuencia, mientras que el número de acciones autorizadas y el valor nominal permanecerán sin cambios. Computershare gestionará el proceso de intercambio para los accionistas registrados.
XTI Aerospace (NASDAQ: XTIA)는 2025년 전략 업데이트를 발표했으며, 일반 주식의 1대 250 주식 통합이 포함됩니다. 2025년 1월 10일부터 시행되는 이번 통합은 나스닥 규정을 준수하고 회사의 장기 성장 위치를 강화하는 것을 목표로 하고 있습니다.
2024년 재무 제표 및 자본 구조 개선 후, XTI는 자본을 조달하고 전략적 인수를 추구할 계획입니다. 이 회사는 FAA가 전동 리프트 카테고리를 공식화한 후, 자사의 주력 제품인 TriFan 600을 통해 VTOL 산업에서의 리더십을 확장하는 데 집중하고 있습니다.
주식 통합은 주주의 소유 비율을 유지하며, 분할 주식은 올림 처리됩니다. 미결 주식 매입 선택권 및 워런트는 이에 따라 조정되며, 승인된 주식 수와 액면가는 변경되지 않습니다. Computershare는 등록 주주의 교환 과정을 관리합니다.
XTI Aerospace (NASDAQ: XTIA) a annoncé une mise à jour stratégique pour 2025, incluant une consolidation des actions ordinaires au ratio de 1 pour 250. La consolidation, qui prendra effet le 10 janvier 2025, vise à rétablir la conformité avec Nasdaq et à renforcer la position de l'entreprise pour une croissance à long terme.
Après des améliorations de son bilan et de sa structure de capital en 2024, XTI prévoit de lever des fonds et de poursuivre des acquisitions stratégiques. L'entreprise se concentre sur l'élargissement de sa position de leader dans l'industrie VTOL, en particulier avec son produit phare, le TriFan 600, suite à la formalisation par la FAA de la catégorie de levage motorisé.
La consolidation des actions maintiendra les pourcentages de propriété des actionnaires, avec des actions fractionnaires arrondies à l’entier supérieur. Les options d'achat d'actions et les bons de souscription en circulation seront ajustés en conséquence, tandis que le nombre d'actions autorisées et la valeur nominale resteront inchangés. Computershare gérera le processus d'échange pour les actionnaires enregistrés.
XTI Aerospace (NASDAQ: XTIA) hat ein strategisches Update für 2025 angekündigt, das eine Konsolidierung der Stammaktien im Verhältnis 1 zu 250 umfasst. Die Konsolidierung, die am 10. Januar 2025 in Kraft tritt, zielt darauf ab, die Nasdaq-Konformität wiederherzustellen und die Position des Unternehmens für langfristiges Wachstum zu stärken.
Nach Verbesserungen in der Bilanz und der Kapitalstruktur im Jahr 2024 plant XTI, Kapital zu beschaffen und strategische Akquisitionen zu verfolgen. Das Unternehmen konzentriert sich darauf, seine Führungsposition in der VTOL-Industrie auszubauen, insbesondere mit seinem Flaggschiffprodukt, dem TriFan 600, nachdem die FAA die Kategorie für motorisiertes Heben formalisiert hat.
Die Aktienkonsolidierung wird die Eigentumsanteile der Aktionäre aufrechterhalten, wobei Bruchstücke nach oben gerundet werden. Ausstehende Aktienoptionen und Warrants werden entsprechend angepasst, während die Anzahl der genehmigten Aktien und der Nennwert unverändert bleiben. Computershare wird den Austauschprozess für eingetragene Aktionäre verwalten.
- Implementation of 1-for-250 share consolidation to regain Nasdaq compliance
- Significant improvements to balance sheet and cap table structure in 2024
- Strategic positioning in the newly formalized FAA powered-lift category
- Need for significant share consolidation indicates previous stock price weakness
- Risk of delisting from Nasdaq due to minimum bid price requirement
Insights
The 1-for-250 share consolidation represents a critical financial restructuring move for XTI Aerospace. This reverse split aims to boost the stock price artificially to meet Nasdaq's minimum bid requirements, typically
The timing aligns with the FAA's formalization of the powered-lift category, potentially positioning XTI to capitalize on new market opportunities. However, the extreme ratio (1:250) suggests significant underlying financial pressures. Most reverse splits use lower ratios like 1:10 or 1:20. This aggressive consolidation could signal desperation to maintain listing status and raise capital.
The rounding up of fractional shares to whole shares, while seeming beneficial to small shareholders, will create minor dilution. The automatic adjustment of options and warrants maintains relative positions but could impact trading liquidity in these instruments.
The FAA's formalization of the powered-lift category marks a pivotal regulatory milestone for VTOL development. XTI's TriFan 600 program could benefit from this clearer regulatory framework, potentially accelerating certification pathways. However, the company appears to be in early stages compared to competitors, with no mention of prototype testing or certification progress.
The strategic focus on powered-lift aircraft aligns with industry trends, but XTI faces intense competition from well-funded players like Joby Aviation and Archer Aviation, who have already achieved significant development milestones. The lack of specific technical achievements or development timelines in this update raises concerns about XTI's competitive position in the rapidly evolving VTOL market.
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,
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
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.
FAQ
When will XTIA's 1-for-250 share consolidation take effect?
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