ENGLEWOOD, Colo. - XTI Aerospace, Inc. (NASDAQ: XTIA), a company specializing in advanced aircraft design, announced a 1-for-250 share consolidation as part of its 2025 strategic initiatives aimed at solidifying its financial structure and fostering long-term growth. This move is intended to help the company comply with Nasdaq's minimum bid price requirement and to bolster its stock price. According to InvestingPro data, XTIA shares have seen significant volatility, falling 97.5% over the past year while showing a recent surge of 104.7% in the past week.
The company is preparing for a transformative phase, with the Federal Aviation Administration's (FAA) recent establishment of the powered-lift category, which XTI believes will open significant opportunities in the vertical takeoff and landing (VTOL) sector. XTI Aerospace has made notable improvements to its balance sheet and capital structure over the past year, positioning itself to raise capital, pursue acquisitions, and continue to enhance its leadership in the VTOL and powered-lift markets. InvestingPro analysis reveals the company faces financial challenges with a current ratio of 0.46, indicating short-term obligations exceed liquid assets. The company's overall financial health score stands at 1.11, labeled as "Weak" by InvestingPro analysts.
Scott Pomeroy, Chairman and CEO of XTI Aerospace, expressed enthusiasm about the company's next phase, emphasizing the share consolidation as a strategic move to support growth initiatives and leverage the evolving aviation market. The company's focus remains on its flagship product, the TriFan 600, while expanding its presence within the powered-lift category.
The stock consolidation, approved by shareholders at the December 27, 2024, annual meeting, will automatically combine every 250 shares of existing common stock into one share. Trading on a split-adjusted basis will commence on January 10, 2025, under the ticker symbol "XTIA" with a new CUSIP number. Fractional shares will be rounded up to the nearest whole share, and adjustments will be made to the terms of outstanding stock options and warrants accordingly. The total number of authorized shares and the par value per share will remain the same.
Computershare Trust Company, N.A., will provide instructions to shareholders for exchanging stock certificates. Those with shares in book-entry form or through a broker will see their holdings automatically adjusted.
XTI Aerospace is engaged in developing the TriFan 600, which combines the vertical takeoff capability of a helicopter with the speed and range of a fixed-wing aircraft. The company also operates a real-time location systems (RTLS) technology unit, Inpixon (NASDAQ:XTIA), serving various industrial clients globally. With revenue of $2.17 million in the last twelve months and a market capitalization of $34 million, InvestingPro data shows the company is currently trading at elevated multiples, with 15 additional key insights available to subscribers.
The press release includes forward-looking statements related to the company's products, technology, and strategies, subject to risks, uncertainties, and other factors that may cause actual results to differ. XTI Aerospace has also requested a hearing before the Nasdaq Hearings Panel to appeal a potential delisting due to non-compliance with the minimum bid price requirement, which they hope to address through the share consolidation.
This article is based on a press release statement from XTI Aerospace, Inc.
In other recent news, XTI Aerospace has been making significant strides in its financial and structural operations. The company recently held its annual meeting where stockholders elected Soumya Das and Scott Pomeroy as directors and ratified Marcum LLP as the independent registered public accounting firm. However, the proposal to increase the number of authorized shares of common stock was not approved. In a series of financial transactions, XTI Aerospace issued common stock shares to Nadir Ali, its former CEO, as payment for a consulting agreement and to a holder of the company's Series 9 Preferred Stock in exchange for the return and cancellation of preferred stock.
The company also issued shares to Streeterville Capital, LLC, and Nadir Ali to settle overdue consulting payments. Furthermore, XTI Aerospace executed an equity exchange, issuing common stock in return for the cancellation of Series 9 Preferred Stock. A legal dispute with Chardan Capital Markets LLC is currently underway among these developments.
XTI Aerospace has undergone leadership changes, appointing Jennifer Gaines as Chief Legal Officer and Tobin Arthur as Chief Strategy Officer. The company also amended its Business Combination Agreement with Damon Motors Inc., introducing new conditions and extending the termination date of the agreement. These are some of the recent developments at XTI Aerospace.
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