XTIA Stock Nosedives On Proposed Public Offering, Retail Turns Bearish

The company announced its intention to sell common stock and warrants in an underwritten public offering but stopped short of specifying what the size of its offering is or what it is being valued at.

Shares of XTI Aerospace Inc. (XTIA) plunged nearly 27% in Thursday’s after-market hours, extending the losses of 3.5% from the day’s regular trading session after the company announced a proposed public offering.

XTIA announced its intention to sell common stock and warrants in an underwritten public offering but stopped short of specifying the size of its offering or its valuation.

The company said it intends to use the proceeds of the public offering to fully repay its outstanding promissory notes, as well as for general working capital and corporate requirements.

Interestingly, XTIA announced a $5 million share buyback plan earlier this month, and that seems to have caught the attention of retail investors on Stocktwits, who pointed it out and voiced their confusion about the company’s strategy.

Another bearish user said they couldn’t be paid to go long on XTIA.

Overall retail sentiment on Stocktwits around XTIA flipped to enter the ‘bearish’ (39/100) territory from ‘bullish’ a day ago.

Earlier this month, XTIA announced that the Federal Aviation Administration (FAA) accepted its Type Certification (TC) application for the TriFan 600, its vertical-lift crossover airplane. The company called this a “significant first-quarter milestone.”

Data from Koyfin shows the average price target for XTIA is $13.50, implying a 449% upside from Thursday’s closing price. There are two brokerage recommendations, with a ‘Strong Buy’ and ‘Buy’ rating each.

XTIA’s stock has fallen more than 77% year-to-date.

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