Company: XTIA
Filing Date: 2025-12-02
Form Type: DEFA14A
Source: 0001213900-25-116942
Chunk: 10

Company: XTI Aerospace, Inc.
Filing Date: 2025-12-02
Form: DEFA14A
Chunk 10
---
 if the price is below the “Minimum Price” (as determined in accordance with Nasdaq rules).
Under Rule 5635(d), the “Minimum Price” means a price that is the lower of: (i) the closing price of our common stock immediately
preceding the signing of the binding agreement; or (ii) the average closing price of our common stock for the five trading days
immediately preceding the signing of the binding agreement. Because, although the initial Conversion Price in the PIPE Offering was equal
to the Minimum Price requirement under Nasdaq Listing Rule 5635(d), the accrual of Preferential Dividends reduces the effective purchase
price of the underlying shares to an amount below the Minimum Price, any issuance of shares pursuant to the PIPE Purchase Agreement and
any issuance of shares to the placement agent upon exercise of the placement agent warrants in excess of 20% of the outstanding common
stock prior to the date of the PIPE Purchase Agreement requires stockholder approval. The terms of each of the Certificate of Designation
for the Series 10 Preferred Stock and the placement agent warrants require the receipt of the Shareholder Approval before shares of the
Company’s common stock can be issued by the Company pursuant thereto.

<div align='center'>6</div>

Private Placement

On November 10, 2025, the
Company entered into the PIPE Purchase Agreement with Purchaser, pursuant to which the Company sold to the Purchaser 25,000 shares of
the Company’s newly designated Series 10 Preferred Stock for an aggregate Subscription Amount of $25,000,000, pursuant to a private
placement that closed on November 12, 2025.

Pursuant to the PIPE Purchase
Agreement, the Company filed a certificate of designation (the “Certificate of Designation”) on November 10, 2025 with the
Secretary of State of the State of Nevada designating the rights, preferences and limitations of the shares of the Series 10 Preferred
Stock. The Series 10 Preferred Stock has a Stated Value of $1,000 per share, and is initially convertible at the Conversion Price of
$1.492 per share, subject to adjustment pursuant to the Certificate of Designation for stock dividends and stock splits, subsequent rights
offerings, pro rata distributions of dividends or the occurrence of a Fundamental Transaction (as defined in the Certificate of Designation).

On the Shareholder Approval
Date, each outstanding share of Series 10 Preferred Stock will automatically convert into that number of