XTI Continues Creative Financing Program for TriFan 600 Project

Primary Capital LLC provides $20 million in Series B financing.

XTI TriFan 600
XTI Aircraft has reached an agreement with Primary Capital LLC for Series B financing totaling $20 million to fund the TriFan 600.XTI Aircraft Company

The TriFan 600 project, currently in development by Denver-based XTI Aircraft, has reached an agreement with Primary Capital LLC for Series B financing totaling $20 million. This batch of funds should give investors some peace of mind when putting up their money toward the developmental VTOL aircraft.

The investments are offered to accredited investors — those with a net worth of more than $1 million (not including the primary residence) and a net income of more than $200,000. This round of investment provides investors with a convertible note that will mature in about two years and has a 30 percent warrant coverage. The maturity date is tied to the projected timing of the first flight of XTI’s piloted subscale prototype. At that point, investors can evaluate the program and choose to pull the note or turn it into common stock.

“Our engagement with Primary Capital expands XTI’s ability to raise the funds necessary for the company’s first prototype and also reduces the risk for all early investors and potential investors in our continuing equity crowdfunding campaign,” said David Brody, XTI’s founder and chairman. “This is an important step toward raising the funds necessary to build and fly the TriFan 600, which will ultimately provide value to all shareholders.”

Non-accredited investors can still invest in XTI through its crowdfunding program. In February, XTI topped $20 million in expressed interest through its crowdfunding efforts last year. Since then, the SEC approved the sale of 20 million shares, each worth $1. By the end of July XTI had raised $1.7 million in Reg A+ stock from more than 700 investors. The minimum investment is $350.

The TriFan 600 is a six-seat aircraft design projected to cruise at 340 knots while being capable of vertical takeoffs and landings.