XTI Aerospace Suffers 20% Decline, Raises $20M in Offering at $1.60 per Share

XTI Aerospace has priced a $20M offering, selling 12.5M shares and warrants at $1.60 per share. The warrants have an exercise price of $2.00 per share. The stock has slumped 20% following the announcement.

XTI Aerospace (Nasdaq: XTIA), a pioneer in xVTOL and powered-lift aircraft solutions, has priced a $20 million public offering. The offering consists of 12.5 million shares of common stock (or pre-funded warrants) and warrants to purchase up to 12.5 million additional shares at a combined price of $1.60 per share XTI Aerospace Announces Pricing of $20 Million Public Offering^[1].

The Common Warrants will have an exercise price of $2.00 per share and will be exercisable for five years. The offering is expected to close on September 15, 2025. Proceeds will fund working capital, general corporate purposes, and development of the TriFan 600 airplane, with ThinkEquity acting as the sole placement agent XTI Aerospace Announces Pricing of $20 Million Public Offering^[1].

The stock price slumped 20% to $1.62 on Friday during pre-market hours of trading following the announcement XTI Aerospace slumps 20%, prices $20M offering at $1.60 per share^[2]. The structure of this offering merits attention. The $1.60 share price combined with immediate $2.00 warrants creates potential for further dilution if the stock price rises above the warrant exercise price. The offering's "best-efforts" nature indicates the placement agent isn't guaranteeing full subscription, reflecting some uncertainty about market demand for these securities XTI Aerospace Announces Pricing of $20 Million Public Offering^[1].

XTI plans to use proceeds for working capital and development of their TriFan 600 aircraft, a core product in their xVTOL (experimental Vertical Take-Off and Landing) portfolio. The company's mention of potentially using funds for acquisitions suggests they're keeping strategic options open, though no specific targets are identified XTI Aerospace Announces Pricing of $20 Million Public Offering^[1].

The offering is expected to close on September 15, 2025, using a shelf registration that became effective on August 12, 2025. This financing will provide XTI with needed capital runway but comes at the cost of ownership dilution for existing investors. For a pre-revenue aerospace company developing novel aircraft technology, such capital raises are often necessary but highlight the ongoing cash burn and development costs in the capital-intensive aerospace sector XTI Aerospace Announces Pricing of $20 Million Public Offering^[1].