Company: XTIA
Filing Date: 2025-12-02
Form Type: DEFA14A
Source: 0001213900-25-116942
Chunk: 9

Company: XTI Aerospace, Inc.
Filing Date: 2025-12-02
Form: DEFA14A
Chunk 9
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 principal amount of approximately $11.9 million and (iii) an aggregate of 6,524,576 Class B Units of XTI Drones Holdings
(the “Class B Units”) with a fair market value of approximately $9.7 million. The aggregate purchase price for each Acquisition
is subject to customary post-closing adjustments.

The Class B Units of XTI
Drones Holdings are exchangeable at any time after May 1, 2026 for shares of the Company’s common stock on a one-for-one basis,
provided that such exchange ratio is subject to equitable adjustments for stock splits, stock dividends, reclassifications and similar
transactions affecting the Company’s common stock. In addition, on the date that is 15 months after November 10, 2025, all outstanding
Class B Units will automatically be exchanged for shares of the Company’s common stock on a one-for-one basis, subject to the foregoing
adjustments.

The aggregate of 6,524,576
Class B Units of XTI Drones Holdings Class B Units issued pursuant to the Acquisitions are exchangeable, as described above, for 6,524,576
shares of Common stock, representing approximately 19.9% of the Company’s outstanding shares of common stock based on the Company’s
total shares outstanding as of immediately prior to the Company’s execution of the PIPE Purchase Agreement on November 10, 2025.

The issuance of additional
shares of the Company’s common stock pursuant to the PIPE Purchase Agreement, and the related issuance of additional shares to
the placement agent upon the exercise of the placement agent warrants, will exceed the 20% threshold under the applicable Nasdaq listing
rules. Accordingly, in order to ensure compliance with Nasdaq Listing Rule 5635(a)(1), the Company must obtain the approval of the Company’s
stockholders for the issuance of the shares of the Company’s common stock pursuant to the PIPE Purchase Agreement and to the placement
agent upon the exercise of the placement agent warrants in the event that the issuance of such shares of common stock is aggregated with
the issuance of any shares or common stock or convertible securities pursuant to the Acquisition Agreements.

Nasdaq Listing Rule 5635(d)
requires stockholder approval prior to certain issuances with respect to common stock (or securities convertible into or exercisable
for common stock), other than in a public offering, of greater than or equal to 20% of the outstanding common stock or voting power of
the issuer prior to the offering