Inpixon (Nasdaq: INPX), a provider of real-time location systems, has announced it has entered into a definitive merger agreement with XTI Aircraft Company (“XTI”), an aviation company developing the TriFan 600, a fixed-wing, vertical takeoff and landing (VTOL) aircraft.
According to the press release “The enterprise value of XTI was ascertained by an independent financial advisory firm to be within the range of USD 252 million and USD 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 USD 1.6 billion.
“If completed, the merger will result in a combined publicly traded company that will focus on advancing the TriFan 600 to market, as well as continuing to offer Inpixon’s real-time location systems technology to manufacturing and warehousing facilities for streamlined operations, greater efficiency, and improved safety.”
David Brody, founder and chairman of XTI Aircraft Company, commented, “After we close (the transaction), 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.”
Scott Pomeroy, XTI CFO and board member added, “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 700 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 USD 7.1 billion, based on our current list price of USD 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.”
Proposed merger expected to be completed by fourth quarter of 2023.
Additional details regarding the merger agreement can be found in Inpixon’s 8-K to be filed with the Securities and Exchange Commission.
For more information