XTI Aerospace Enters Second Amendment to Business Combination Agreement with Damon Motors Inc.
XTI Aerospace, a Nevada-based company specializing in computer programming services, has made significant strides in its merger with Damon Motors Inc. The recent SEC filing reveals a second amendment to the Business Combination Agreement, introducing new conditions for the merger. The amendment, dated September 26, 2024, requires Damon Motors to secure at least $13 million in financing commitments.
The merger, initially announced in October 23, 2023, involves the integration of Damon Motors with a subsidiary, resulting in Damon Motors becoming a wholly-owned entity of Spinco. The second amendment extends the termination date to October 30, 2024, and adjusts the lock-up agreement terms for certain Damon shareholders, providing parity to XTI Aerospace and Spinco shareholders.
The amendment ensures that any material changes affecting XTI Aerospace or its shareholders require the company's consent, safeguarding their interests throughout the merger process. This strategic move within the aerospace and technology sectors positions XTI Aerospace to expand its footprint through the acquisition.
In recent developments, XTI Aerospace has appointed Tobin Arthur as Chief Strategy Officer and established a Corporate Advisory Board. The company is also dealing with a compensation dispute with Chardan Capital Markets LLC and continues to expand its equity transactions.
XTI Aerospace has filed a patent application for its TriFan 600 aircraft and secured a conditional purchase agreement with Mesa Air Group, potentially generating significant revenue. The company has extended its merger deadline with Damon Motors and announced strategic partnerships and equity investments to enhance its leadership.
InvestingPro Insights highlight challenging financial metrics for XTIA, including market capitalization and cash burn rate. The stock has experienced downward pressure, with a significant decline in the 6-month price total return. InvestingPro offers additional tips for a comprehensive analysis of XTIA's financial health and market position.
In conclusion, XTI Aerospace's merger with Damon Motors and recent developments signify a crucial phase for the company. Investors should carefully consider the financial metrics and market trends to make informed decisions about their investments in XTIA. Stay tuned for further updates on this evolving merger and its impact on the aerospace and technology sectors.