Development of XTI TriFan-600 Aircraft Proceeding Apace

Nevada-based Inpixon is a developer and manufacturer of Real-Time Location Systems (RTLS) has entered into a definitive merger agreement with Denver-based XTI Aircraft, an aviation concern currently developing the TriFan-600—a fixed-wing, Vertical Take-Off and Landing (VTOL) aircraft.

The enterprise value of XTI was ascertained by an independent financial advisory firm to be within the range of $252-million and $343-million. XTI’s valuation was determined after comparison with certain public companies with similar business models to XTI in the air travel/VTOL segment of the aviation industry, with an average enterprise value of approximately $1.6-billion. If completed, the merger will result in a combined publicly-traded company contemporaneously focused on the TriFan-600’s maturation and advancement to market and the continued manufacturing and sale of Inpixon’s real-time location systems technology. The companies will launch a merger information portal at xti-inpx-merger.com, to which interested parties may refer for news of the transaction.

XTI Aircraft Company founder and chairman David Brody stated: “We’re excited to announce this transaction, which we believe will be a transformative event for both companies. We believe that the TriFan-600 airplane will revolutionize point-to-point air travel by combining the comfort, speed, and range of similar conventional business aircraft with the flexibility, convenience, and pinpoint transportation of a helicopter. In 2019, we successfully conducted multiple hover tests of our two-thirds scale unmanned proof-of-concept configuration of the TriFan. After we close, we expect to be in a strong position to expand our operations, work toward building our first full-scale piloted test aircraft, and continue our efforts toward achieving FAA certification and commercial production.”

XTI CFO and board-member Scott Pomeroy set forth: “We believe this merger, which results in XTI’s listing on NASDAQ, is the logical next step to give XTI access to the broader public capital markets following its earlier Regulation CF and Regulation A offerings. We further believe that our future capital plans are supported by the existing strong demand for the TriFan-600, evidenced by the more than seven-hundred conditional pre-orders under a combination of aircraft purchase agreements, non-binding reservation deposit agreements, and options. These pre-orders represent potential gross revenues of approximately $7.1-billion, based on our current list price of $10-million per-aircraft assuming the company is able to execute on the development program for the TriFan, secure FAA certification, and deliver these aircraft.”

Inpixon CEO Nadir Ali remarked: “We believe that with XTI’s experienced executive team and the disruptive potential of the TriFan-600 for the aviation industry, this transaction has the potential to unlock value for Inpixon shareholders. We anticipate that this transaction will not only aid in the growth of XTI but will also enable Inpixon shareholders to own a meaningful interest of approximately forty-percent of the outstanding common stock of the combined company with a higher valuation in a multibillion-dollar market.”

In designing the TriFan-600, the XTI Aircraft Company set out to amalgamate fixed-wing business-aircraft performance with VTOL utility and mission-flexibility. XTI estimates the TriFan will deliver a maximum-speed of 299-knots and a range of 608-nautical miles—metrics respectively twice those of comparably-sized helicopters. By dint of its TriFan-600, XTI seeks to create a new aircraft category designated Vertical-Lift Crossover Airplane (VLCA).

The TriFan-600’s extant worldwide addressable market comprises some 58,000 turbine-powered business aircraft (fixed-wing and rotorcraft). Moreover, XTI intends to target the emergent Advanced Air Mobility (AAM) sector. XTI is led by an experienced management team individually and collectively versed in the abstruse business of bringing aircraft to market.

FMI: www.xtiaircraft.com