Company Provides Update On Former Subsidiary Spin Off Distribution And Proposed Business Combination With Damon Motors

XTI Aerospace Announces Second Quarter 2024 Business Update

Company Provides Update on Former Subsidiary Spin-Off Distribution and Proposed Business Combination with Damon Motors

ENGLEWOOD, Colo., Aug. 14, 2024 /PRNewswire/ -- XTI Aerospace Inc. (XTI) today announces a business update and the filing of its quarterly report on Form 10-Q for the period ended June 30, 2024.

On July 17, 2024, XTI completed the distribution of 100% of the outstanding shares of its former subsidiary, Aero Kinetics, Inc. (Aero Kinetics), to XTI's stockholders. The distribution was effected through a tax-free spin-off pursuant to Section 355 of the Internal Revenue Code. As a result of the distribution, XTI stockholders received one share of Aero Kinetics common stock for every four shares of XTI common stock held by them on the record date of June 29, 2024.

In addition, XTI announced today that it has entered into a definitive agreement to acquire Damon Motors, Inc. (Damon), a leading manufacturer of electric motorcycles. The proposed transaction is expected to close in the fourth quarter of 2024, subject to the receipt of regulatory approvals and other closing conditions. Upon closing, XTI will become a leading provider of both aerospace and electric motorcycle products.

"We are pleased to provide this business update and to announce our proposed business combination with Damon Motors," said Edward Dolanski, CEO of XTI. "These transactions represent significant milestones in our strategy to transform XTI into a diversified aerospace and technology company. We believe that the combination of our aerospace capabilities with Damon's electric motorcycle technology will create a powerful platform for growth and innovation."