 |
| Rendering of XTI VTOL aircraft. Photo: XTI |
[Avionics Today 09-06-2016] XTI Aircraft Company (XTI) has launched the next phase of its funding strategy to bring its partially crowdfunded Vertical Take-off and Landing (VTOL) aircraft, the TriFan 600, to market. In addition to its ongoing equity crowdfunding campaign, XTI entered into an engagement agreement with the New York investment bank Primary Capital, for XTI’s $20 million Series B round. The security being offered to each accredited investor under this financing is a convertible note that will mature in about two years, and has 30 percent warrant coverage.
“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.
XTI plans 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 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.