Company: XTIA
Filing Date: 2025-03-31
Form Type: 8-K
Source: 0001013762-25-004468
Chunk: 1

Company: XTI Aerospace, Inc.
Filing Date: 2025-03-31
Form: 8-K
Item: Item 1.01
Chunk 1
---
 the sale of the Shares and the Warrants after deducting the
underwriting discounts and commissions and other estimated offering expenses payable by the Company, and assuming full exercise of the
Pre-funded Warrants, is expected to be approximately $3.3 million. The Company intends to use the net proceeds from the Offering for working
capital and general corporate purposes. The Company also intends to use a portion of the net proceeds from the Offering, approximately
$2.7 million, to repay in full all amounts outstanding, including a 115% prepayment penalty, in respect of two secured promissory notes
issued by the Company to Streeterville Capital, LLC on May 1, 2024 and May 24, 2024.

Upon
closing of the Offering, the Company will issue the Representative warrants (the “ Representative’s Warrants”) as compensation
to purchase up to 147,060 shares of Common Stock (5% of the aggregate number of Shares and Pre-funded Warrant Shares). The Representative’s
Warrants will have an exercise price of $1.70 per share. The Representative’s Warrants will beexercisable, in whole or in
part, immediately upon issuance until the five-year anniversary of the commencement of sales of the Shares and the Warrants.

A copy of the opinion of Mitchell
Silberberg & Knupp LLP relating to the legality of the issuance and sale of the Shares, the Warrants, the Warrant Shares, the Representative’s
Warrants and the shares of Common Stock issuable upon exercise of the Representative’s Warrants is attached as Exhibit 5.1 hereto.

The Underwriting Agreement
contains customary representations, warranties and covenants made by the Company. It also provides for customary indemnification by each
of the Company and the Underwriters, severally and not jointly, for losses or damages arising out of or in connection with the Offering,
including for liabilities under the Securities Act of 1933, as amended (the “ Securities Act”), other obligations of the parties
and termination provisions.

The Company agreed and its
executive officers and directors entered into lock-up agreements (each, a “ Lock-up Agreement” and collectively, the “ Lock-up
Agreements”) pursuant to which they agreed that, without the prior written consent of the Representative, not to, directly or indirectly,
offer to sell, sell, pledge or otherwise transfer or dispose of any of shares of (or enter into any transaction or device that is designed
to, or could be expected