XTI Aircraft Company has announced that its current financing on the StartEngine crowdfunding platform will close sometime during the fourth quarter of 2019.
Although XTI said that crowdfunding has been “an important source of working capital,” the company is now re-evaluating its financing approach as it sees success with its $25 million Series B investment round.
“We conducted a series of successful initial hover tests earlier this year, we announced a major collaboration with GE Aviation at Oshkosh last month, and we’ve received 81 orders for the airplane so far,” stated XTI CEO Robert LaBelle in a press release. “That represents over a half billion dollars in gross revenues upon delivery. Clearly, the company’s business prospects are strong, and our focus and financing plans have changed since we initially commenced our crowdfunding offering.”
XTI will continue to sell shares for $1.50 on StartEngine until the offering closes. Then, the company will either file an offering statement for a new offering in the future at a different share price, or end its crowdfunding campaign permanently.
XTI said it is currently planning to enter into arrangements with one or more alternative trading systems or secondary markets, which would allow XTI shareholders to offer their sales on a secondary market after the crowdfunding campaign closes. These markets could include StartEngine Secondary, StartEngine’s own proposed secondary market.
XTI is currently developing the TriFan 600, a six-seat, ducted fan, hybrid electric VTOL aircraft that is targeting a cruise speed of 345 miles per hour (555 kilometers per hour) at altitudes up to 30,000 feet. In a separate announcement, the company said it will soon be testing a large-scale demonstrator aircraft at the Northrop Grumman Utah UAS Test Site in Box Elder County.
“XTI Aircraft Co. is very pleased to be testing our large-scale unmanned demonstrator in Utah,” stated LaBelle. “We could not have found a more hospitable environment, including favorable weather conditions and excellent support from local officials and industry.”