Shares of XTI Aerospace, Inc ( XTIA ). are trading higher Friday potentially from continued momentum after the company announced a significant stock offering on Wednesday.

What To Know: XTI is issuing 363,636,364 shares of common stock at 55 cents per share, a substantial discount from its previous trading levels. The offering, which is expected to generate gross proceeds of approximately $20 million, will close on Jan. 10 2025, pending the fulfillment of customary conditions. ThinkEquity is acting as the sole placement agent for the deal.

The company plans to use the proceeds for general working capital and corporate purposes. However, the announcement has triggered a sharp sell-off, as the market reacts to the heavy dilution resulting from the massive increase in the share count. The pricing of the offering, which is well below market value, may have further amplified concerns about shareholder value and the company's financial strategy.

XTIA Price Action: XTI Aerospace ( XTIA ) shares were down 50.5% at $6.22 at the time of writing, according to Benzinga Pro.

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