XTI Aerospace Issues Shares as Part of Stock Exchange and Compensation Agreement

XTI Aerospace, Inc. (NASDAQ:XTIA) recently filed an 8-K form with the Securities and Exchange Commission, detailing an issuance of 19,961,587 common stock shares to a shareholder of the company’s Series 9 Preferred Stock. The shares, referred to as Preferred Exchange Shares, were exchanged for 850 shares of Series 9 Preferred Stock with an aggregate value of $892,500. This transaction, conducted on December 2, 2024, occurred at a price per share ranging between $0.0445 and $0.0449.

The issuance of these shares was conducted according to exchange agreements dated December 2, 2024, and December 4, 2024. XTI Aerospace availed itself of an exemption from registration as provided under Section 3(a)(9) of the Securities Act of 1933. The exemption was granted on the grounds that the Preferred Exchange Shares were issued in lieu of existing securities, no additional consideration was provided by the shareholder, and the company did not pay any commissions or remuneration in connection with the exchange.

Following this issuance, the total number of outstanding common stock shares for XTI Aerospace stands at 272,724,231 as of December 5, 2024.

In a separate development, on the same date, XTI Aerospace finalized a Restricted Stock Award Agreement with Nadir Ali, a consultant, former Chief Executive Officer, and former director of the company. As per the agreement, XTI Aerospace issued 21,345,967 fully vested common stock shares to Mr. Ali at a price per share of $0.0476. These shares, referred to as the “Shares,” were granted to Mr. Ali in partial satisfaction of a financial obligation amounting to $1,875,000 under a Consulting Agreement dated March 12, 2024.

The issuance of shares to Nadir Ali was executed under the company’s 2018 Employee Stock Incentive Plan, as amended, and the shares were registered pursuant to a Form S-8 registration statement. The specifics of the Restricted Stock Award Agreement have been detailed in Exhibit A to the Consulting Agreement, which was filed as part of the company’s prior Current Report on Form 8-K dated March 15, 2024.

The report concluded with the signature of Brooke Turk, XTI Aerospace’s Chief Financial Officer, signifying the accuracy and submission of the disclosed information to the Securities and Exchange Commission.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read XTI Aerospace’s 8K filing here.

XTI Aerospace Company Profile

XTI Aircraft Company manufactures vertical takeoff airplanes. The company provides TriFan 600, which lifts off vertically. XTI Aircraft Company was formerly known as AVX Aircraft Technologies, Inc and changed its name to XTI Aircraft Company in March 2015. The company was incorporated in 2009 and is based in Englewood, Colorado.