Company: XTIA
Filing Date: 2025-03-31
Form Type: 424B5
Source: 0001013762-25-004458
Chunk: 19

Company: XTI Aerospace, Inc.
Filing Date: 2025-03-31
Form: 424B5
Chunk 19
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 our compliance with the requirements for continued listing under the Nasdaq Marketplace
Rules, including but not limited to Market Place Rule 5635, or the stockholder approval rule. The stockholder approval rule prohibits
the issuance of shares of common stock (or derivatives) in excess of 20% of our outstanding shares of common stock without stockholder
approval, unless those shares are sold at a price that equals or exceeds the Minimum Price, as defined in the stockholder approval rule,
or in what Nasdaq deems a Public Offering, as defined in the stockholder approval rule. The securities sold in this offering may be sold
at a significant discount to the Minimum Price as defined in the stockholder approval rule, and we do not intend to obtain the approval
of our stockholders for the issuance of the securities in this offering. Accordingly, we have sought to conduct, and plan to continue
to conduct, this offering as a Public Offering as defined in the stockholder approval rule, which is a qualitative analysis based on several
factors as determined by Nasdaq, including by broadly marketing and offering these securities in a firm commitment underwritten offering
registered under the Securities Act. Demand for the securities sold by us in this offering, and the final offering price for these securities,
will be determined following a broad public marketing effort over several trading days, and final distribution of these securities will
ultimately be determined by the underwriter. Nasdaq has also published guidance that an offering of securities that are “deeply
discounted” to the Minimum Price (for example a discount of 50% or more) will typically preclude a determination that the offering
qualifies as Public Offering for purposes of the stockholder approval rule. We cannot assure you that Nasdaq will determine that this
offering will be deemed a Public Offering under the stockholder approval rule. If Nasdaq determines that this offering was not conducted
in compliance with the stockholder approval rule, Nasdaq may cite a deficiency and move to delist our common stock from The Nasdaq Capital
Market. Upon a delisting from The Nasdaq Capital Market, our stock would likely be traded in the over-the-counter inter-dealer quotation
system, more commonly known as the OTC. OTC transactions involve risks in addition to those associated with transactions in securities
traded on the securities exchanges, such as The Nasdaq Capital Market, or, together, Exchange-listed stocks. Many OTC stocks trade less
frequently and in smaller volumes than Exchange-listed stocks