ENGLEWOOD, Colo. – XTI Aerospace, Inc. (NASDAQ:XTIA), a company specializing in advanced aircraft design, has announced a new share repurchase program. The board of directors has authorized the repurchase of up to $5 million of the company’s common stock, representing over half of the company’s current market capitalization of $9.47 million. This decision comes in response to what XTI Aerospace perceives as an undervaluation of its shares, though InvestingPro analysis indicates concerning financial metrics, including negative EBITDA of -$19.72 million.
The repurchases will be conducted through open market transactions, privately negotiated deals, or other methods, including those intended to comply with Rule 10b-18 under the Securities Exchange Act of 1934. The program is subject to market conditions, regulatory requirements, and other factors that may influence the timing and volume of stock buybacks. With an initial duration of twelve months, the program may be extended up to eighteen months and can be suspended or discontinued at any time. As of today, XTI Aerospace has approximately 3.7 million shares of common stock outstanding. The announcement comes after the stock has experienced a significant decline, with InvestingPro data showing a 99.49% drop in share price over the past year.
Scott Pomeroy, Chairman and CEO of XTI Aerospace, expressed the company’s commitment to shareholder value, stating, "The decision to implement a share buyback program reflects our strong confidence in the intrinsic value of XTI Aerospace and our belief in its future potential." However, InvestingPro data reveals significant financial challenges, with a current ratio of 0.46 indicating potential liquidity concerns. Subscribers to InvestingPro can access 15 additional key insights about XTIA’s financial health and market position.
XTI Aerospace is known for developing the TriFan 600, a business aircraft with vertical takeoff and landing capabilities, and for its Inpixon business unit, which provides real-time location systems technology. The company aims for market leadership and long-term success through its innovative aviation solutions, generating revenue of $2.17 million in the last twelve months.
This press release includes forward-looking statements, which are subject to risks, uncertainties, and assumptions. There is no guarantee that the company’s expectations will be achieved, and actual results may differ. Investors are advised to review the company’s SEC filings, which discuss risk factors and other important information.
The share repurchase program is based on a press release statement from XTI Aerospace.
In other recent news, XTI Aerospace has announced a significant financial milestone, raising $45 million in gross proceeds through the sale of common stock. This funding is aimed at supporting the development of the TriFan 600, an advanced VTOL aircraft. The company has also completed a critical downwash study for the TriFan 600, which focused on airflow patterns during vertical takeoff and landing, enhancing safety and performance. Additionally, XTI Aerospace has regained compliance with Nasdaq’s minimum bid price requirement, meeting the criteria after maintaining a closing bid price at or above $1.00 for over ten consecutive business days.
XTI Aerospace is progressing with its 2025 milestones for the TriFan 600, including optimizing fuel systems and refining engine components. The company plans to resume pre-sales later this year and has outlined significant engineering goals such as applying for FAA type certification. In a strategic move, XTI Aerospace has appointed Kimberly Montgomery to its Corporate Advisory Board, bringing extensive experience in air medical transport to the team. The company has also entered a non-binding agreement to acquire an equity interest in ReadyMonitor, an AI-powered autonomous drone company, further expanding its technological capabilities.
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