XTI Aircraft Engages Primary Capital to Help with $20 Million Series B Concurrent to Reg A+ Offer

XTI Aircraft has announced a $20 million Series B funding round to run concurrently with its Reg A+ offer that is accepting investors on StartEngine now. XTI has developed a concept for a vertical take off and landing aircraft that cruises like a plane. XTI states they plan 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 security being offered to accredited investors under the Series B is a convertible note that will mature in about two years, and has 30% warrant coverage. 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. The Reg A+ offer is accepting both accredited and non-accredited investors at $1 per share with a $350 minimum investment. The Reg A+ offer hopes to raise up to $20 million but there is no minimum hurdle.

Primary Capital said it was pleased to begin the relationship with XTI. “We’re excited to be working with the XTI team and to be supporting this game-changing aerospace project,” said Primary Chairman John Leo.

“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 has struggled to drive investors to its Reg A+ offer. Originally filed with a $3 million hurdle for success, the company refiled with the SEC in June allowing for investors to participate without and minimum threshold requirements.

The XTI concept is for a six-seat “TriFan 600” that will have the speed, range and comfort of a business jet and the ability to take off and land vertically like a helicopter. XTI explains that by 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.