Aviation news analysis
50 SKY SHADES - World aviation news

XTI Aircraft Company launches Series B financing

Download: Printable PDF Date: 06 Sep 2016 13:30 categories:
Publisher:
XTI Aircraft Company launches Series B financing - Finance publisher
Tatjana Obrazcova
Country: United States Aircraft: Airplanes

XTI Aircraft Company (XTI) today launched the next phase of its funding strategy to bring the TriFan 600 to market. In addition to its ongoing equity crowdfunding campaign, XTI entered into an engagement agreement with the New York investment bank Primary Capital LLC, for XTI's $20 million Series B round.

The security being offered to each accredited investor under this financing is a convertible note that will mature in about two years, and has 30 percent warrant coverage.

"Our engagement with Primary Capital expands XTI's ability to raise the funds necessary for the company's first prototype and also reduces the risk for all early investors and potential investors in our continuing equity crowdfunding campaign," said David Brody, XTI's Founder and Chairman. "This is an important step toward raising the funds necessary to build and fly the TriFan 600, which will ultimately provide value to all shareholders."

XTI plans to build and fly a piloted subscale prototype in two years, and has tied the maturity date of the convertible notes to this milestone. The investors in the Series B round will have the chance to assess XTI's performance before deciding whether to call the note or convert into common stock of XTI when the note matures.

"Primary Capital is pleased to begin this relationship with XTI Aircraft Company," said John Leo, Chairman and Managing Member of Primary. "We're excited to be working with the XTI team and to be supporting this game-changing aerospace project."

The six-seat TriFan 600 will have the speed, range and comfort of a business jet and the ability to take off and land vertically like a helicopter. Using three ducted fans, the aircraft will lift off vertically and its two wing fans rotate forward for a seamless transition to cruise speed, at 400 miles an hour and a range of up to 1,600 miles.



Loading comments for XTI Aircraft Company launches Series B financing...


Recommended

Farnborough Airshow Day 5: With diversity at Airbus, ‘we make it fly’

As Airbus wraps up the business activity at this week’s Farnborough Airshow, the event’s spotlight now turns to a key element of the company’s success: its employees, and the diversi...

The second MC-21-300 test aircraft has flown nonstop from Irkutsk to Zhukovsky

On 20 July 2018, the second MC-21-300 test aircraft, participating in the flight test program, flew from Irkutsk to the airfield “Ramenskoye” of Flight Research Institute n.a. M.M. Gromov...

New Bombardier Global 5500 and Global 6500 aircraft to feature Rockwell Collins' transformational flight deck and cabin systems

First true combined vision system seamlessly merges enhanced and synthetic vision images in a single view Extends the company’s Venue™ cabin management system to the Global 5500 and G...

Garmin Pilot app launches real-time engine data display with play-back, best-in-class document viewer and more for Apple mobile devices

Garmin International, Inc., a unit of Garmin Ltd. (NASDAQ: GRMN), announced several new additions to the Garmin Pilot™ feature set for Apple and Android mobile devices. Among the updates, w...