XTI Aircraft Co. initiated another strategy to raise the funds necessary to build a piloted subscale TriFan 600 prototype, supplementing its unique equity crowdfunding campaign. The company now has an engagement agreement with the New York investment bank Primary Capital, LLC for its $20 million Series B round.
First flight for the TriFan 600 prototype is expected in two years, which is when each convertible note will mature for Series B investors. At maturity, investors will have the chance to assess the company’s performance before deciding whether to call the note or convert into common stock of XTI. The note also has 30% warrant coverage.
After the crowdfunding campaign failed to meet its $3 million milestone earlier this year, XTI was forced to refund more than $1.2 million to investors. The campaign reopened in July and still has the same minimum investment of $350.
XTI says the six-seat TriFan 600 will have the ability to take off and land vertically, with the speed, range and comfort of a business jet.