Company: XTIA
Filing Date: 2025-11-21
Form Type: PRER14A
Source: 0001213900-25-113701
Chunk: 15

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-21
Form: PRER14A
Chunk 15
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Approval and to cause the Board to recommend to the shareholders that they so approve. If Shareholder Approval is not obtained on or
prior to January 31, 2026, the Company is obligated to call a special or annual meeting of shareholders 180 days thereafter until such
Shareholder Approval is obtained.

Impact on Stockholders of Approval or Disapproval of this Proposal

If this proposal is approved,
existing stockholders will suffer dilution in ownership interests and voting rights as a result of the issuance of shares of the Company’s
common stock pursuant to the PIPE Purchase Agreement and the related issuance of shares to the placement agent upon the exercise of the
placement agent warrants.

For example, there are 20,777,481
shares of the Company’s common stock issuable upon the conversion of the 25,000 outstanding shares of Series 10 Preferred Stock
issued to the Purchaser in the PIPE Offering, at a conversion price of $1.492 per share, assuming full accrual of the Preferential Dividends
and that such dividends are paid in shares of common stock, and the exercise of the associated Pre-Funded Warrants issued in accordance
with the Certificate of Designation, without giving effect to the Beneficial Ownership Limitation. In addition, there are 837,801 shares
of the Company’s common stock issuable upon the exercise of the placement agent warrants. Assuming the issuance of all of such
shares, such shares would constitute approximately 39.7% of the outstanding common stock as of November 10, 2025. Because the numbers
of shares of the Company’s common stock issuable upon the conversion of the Series 10 Preferred Stock may be adjusted, the number
of shares that will actually be issued may be more or less than such number of shares. The ownership interest of the existing stockholders
(other than the Purchaser) would be correspondingly reduced. The number of shares of the Company’s common stock described above
does not give effect to (i) the potential future issuance of shares of the Company’s common stock upon the exchange of the Class
B Units pursuant to the Acquisition Agreements; (ii) the future issuance of shares of the Company’s common stock upon the exercise
of outstanding options or warrants, other than the Pre-Funded Warrants, or (iii) any other potential future issuances of common stock,
including pursuant to financing transactions to be effect in connection with the transactions contemplated by the Acquisition Agreements.
The sale into the public market of these shares