US-based XTI Aircraft Company, a vertical takeoff and landing (VTOL) aircraft manufacturer, is merging with real-time location services provider Inpixon after entering a definitive merger agreement.
The merger of the two companies is being seen as a way to move forward on the development of XTI’s fixed-wing VTOL aircraft, the TriFan 600 and bringing the vehicle to market.
XTI founder and chairman David Brody believes that the aircraft could “revolutionise point-to-point air travel”, saying: “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.”
According to XTI, the TriFan 600 is a fixed-wing business aircraft that will have a speed of up to 345mph and a range of 700 miles. It is one of a number of VTOL aircraft in development at the moment as part of a quickly growing industry.
Following the merger, which will see XTI shareholders hold 60% of common stock and Inpixon shareholders hold 40%, the two companies are planning to operate under the name XTI Aerospace, expected to be led by XTI’s chief financial officer Scott Pomeroy.
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Pomeroy explained the reasoning behind the merger as providing XTI with a chance to be listed on the Nasdaq stock exchange and thus providing the company with access to “broader public capital markets”.
According to the announcement of the merger, an independent financial advisory corporation found XTI’s enterprise value to be between $252m and $343m.
Inpixon CEO Nadir Ali said: “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.”
The VTOL market recently met an important landmark as manufacturing company Joby Aviation became the first to receive flight permits from the Federal Aviation Administration for its electric VTOL aircraft.