The XTI Aircraft Company has filed with the SEC to complete a Regulation A+ offering following a successful Test the Waters (TTW) campaign that generated over $13 million in investor interest. The company would like to raise $10 million using Tier II of the updated exemption.
XTI launched a TTW equity crowdfunding campaign on StartEngine in late August to gauge investor interest in the TriFan 600, a six-seat fixed-wing airplane with the ability to take off and land like a helicopter. According to the company, conceptual design of the aircraft has been completed and validated by an independent team of technical experts. If the company receives SEC qualification, XTI will have the opportunity to see how much of the investor interest holds. Using TTW is not a binding agreement but does allow an issuing company to determine whether or not they should undergo the time consuming process of selling securities to the general public.
XTI filed a Regulation D offer, using 506(b), this past Spring with a total offering amount of $15 million. It was not clear how this may impact the Reg A+ offer.
Based on XTI’s valuation of the company, the initial group of investors will own approximately 15%-25% of the company, depending on the amount raised in this offering. David Brody, founder and chairman of XTI, stated:
“This is an unprecedented opportunity that has captured the imagination of many small investors. People recognize this as a once-in-a-lifetime chance to get in early on something truly revolutionary, and to help shape and own the future of flight.”
The TriFan 600 would become the first commercially certified high-speed, long-range vertical takeoff and landing (VTOL) airplane to provide true door-to-door travel. Brody explained:
“No traditional jet, helicopter or other aircraft opens the same world of possibilities.”
XTI Aircraft Company is led by a team of aviation industry veterans who have developed a plan and multi-faceted funding strategy for successful completion of the project yielding a flying concept demonstrator in three years, and certification in seven to nine years. The team includes Vice Chairman Jeffrey Pino, former president and chief executive of Sikorsky Aircraft, XTI board member Charlie Johnson, former president of Cessna Aircraft Company, and Chief Engineer and board member Dennis Olcott, Ph.D., who previously served as chief engineer for Adam Aircraft and for the PiperJet program.
“This team knows what it takes to finance, design, certify and launch a program of this magnitude. We are currently focused on raising capital, finalizing diligence on our technology, and talking with key vendors that will lead to building our prototype.”
He then added that the team will be attending the National Business Aviation Association (NBAA) Convention in mid-November to continue these efforts.
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