XTI Aircraft Company this week announced a term sheet agreement for an undisclosed lead investor to provide between $17 million and $29 million in fresh investment for its TriFan 600 hybrid-electric vertical takeoff and landing (eVTOL) aircraft. Subject to the completion of due diligence, the deal, which involves a combination of equity and convertible debt, is due to be closed in January.
In August, Colorado-based XTI raised $25 million through a Series B private placement. “We’re optimistic that this term sheet will lead to fully funding and closing our Series B round,” said XTI chief executive officer Robert LaBelle. “This is the direct result of our progress over the past 12 months, which included conducting a series of successful initial hover tests, our major collaboration with GE Aviation in July, and receiving 81 orders for the airplane so far. That represents over half a billion dollars in gross revenues upon delivery.”
The six-seat TriFan 600, which is not primarily intended for the emerging urban air mobility market, is expected to offer a range of up to 1,200 miles and a cruise speed of 345 mph. Using three ducted fans, the aircraft lifts off vertically before two wing fans rotate forward to transition to horizontal cruise at up to 30,000 feet. XTI sees the eVTOL design vying for applications currently served by conventional fixed-wing business aircraft.
Meanwhile, former Cessna president and COO Charlie Johnson rejoined XTI (Booth N1816) as its chief operating officer on October 20. He has previously served on the company’s board for four years and also as interim CEO in 2016.