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Wednesday, September 9, 2015

'Crowdfunders' Offer XTI Nearly $4.5M

XTI Airfract TriFan 600 vertical takeoff and landing fixed-wing business aircraft.
Photo courtesy of XTI Aircraft
Individual investors have offered XTI Aircraft nearly $4.5 million so far in its development of a five-passenger TriFan 600 vertical takeoff and landing (VTOL) fixed-wing business aircraft, the Denver-based company said today. On Aug. 25, it added such "crowdfunding" sources to a financing campaign that includes traditional backers including banks, private equity and venture capital firms, high net-worth individuals and aviation OEMs. In the ensuing two weeks, the crowdfunding investors have reserved shares totaling $4,492,250 by midday today, according to StartEngine.com, the online platform with which XTI is working. (Individual investors in the U.S. and abroad can reserve XTI shares in amounts ranging from $250 to more than $200,000.) The approach takes advantage of a U.S. Securities and Exchange Commission (SEC) ruling this year that allows companies to raise financing under less stringent eligibility, disclosure and reporting requirements. XTI is working under Tier 2 of that so-called Regulation A+, which allows it to raise up to $50 million. The company can't accept money from these investors until it gains SEC certification to do so. It will decide later this year whether to apply for that certification.
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