XTI Aerospace (XTIA) stock fell on Friday after the vertical takeoff airplane manufacturer announced the pricing of a public offering for its shares. The company has priced shares in a public offering at $1.60 each, with each share coming with a warrant. The company will sell 12.5 million shares in this offering, and the warrants have an exercise price of $2. These warrants will expire five years after being issued.
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XTI Aerospace expects the public offering to generate gross proceeds of $20 million. It expects to use these funds for working capital and other general corporate purposes. This includes the development of its TriFan 600 airplane. It may also use a portion of the money to invest in or acquire businesses or technologies, but currently has no such commitments.
XTI Aerospace Stock Movement Today
XTI Aerospace stock was down 23.65% in pre-market trading on Friday, following an 8.56% fall yesterday. The shares have also decreased 81.12% year-to-date and 96.47% over the past 12 months. Today’s news came with heavy trading, as some 1.7 million shares changed hands, compared to a three-month daily average of about 1.06 million units.
It makes sense that XTI Aerospace stock would fall alongside the pricing of shares in a public offering. The $1.60 per share price is well below its previous closing price of $2.03. On top of that, these are new shares being issued, which dilute the stakes of current XTIA investors.
Is XTI Aerospace Stock a Buy, Sell, or Hold?
Turning to Wall Street, there’s a lack of analyst coverage for XTI Aerospace. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates XTIA stock a Neutral (45) with a $2 price target. It cites “poor financial performance, with declining revenues and negative profit margins posing significant risks” as reasons for this stance.
