CFIUS Approval Clears XCOR Aerospace's First Close of Series B Financing XCOR Raises $14.2 Million of Investment Capital Led by Dutch Investors
MOJAVE, Calif., May 27, 2014 /PRNewswire/ -- XCOR Aerospace announced today that the United States Treasury Department's Committee on Foreign Investment in the US (CFIUS) has approved the Series B lead investment by Dutch investors. The first closing of XCOR's new round of finance issued $14.2 million of Series B preferred shares. XCOR will use the funds to bring the XCOR® Lynx® suborbital spaceplane to market.
The Series B financing was led by Space Expedition Corporation (SXC) of The Netherlands. Michiel Mol and Mark Hoogendoorn of SXC will join the current five members on the XCOR Board of Directors. The first round also included many existing and new investors including: board member Esther Dyson, Pete Ricketts (co-owner of the Chicago Cubs), and a number of Silicon Valley entrepreneurs and early-stage investors. A smaller second closing is scheduled over the summer.
The SXC investment in XCOR signals a strong commitment to the commercial space industry by the Dutch entity, which is also XCOR's lead wet-lease customer and general sales agent. Michiel Mol said, "With this investment in XCOR, we're closing ranks with our most strategic partner. We will take the next step together toward our first commercial spaceflight. I'm proud to become a part of this fantastically dedicated team of 'future makers' and game changers."
Mark Hoogendoorn noted, "Investing in XCOR is much more than investing in innovative technology and a team of highly skilled engineers. Most of all, it's investing in a long term vision we strongly believe in that will enable a new era of sustainable and regular space access that will positively impact all mankind."
Jeff Greason, Founder and CEO of XCOR, said, "We are very pleased to have this first closing of the Series B and welcome Michiel and Mark to the Board. This investment will allow us to accelerate and run in parallel several final developments in the critical path to first flight."
"This first closing of the Series B is a signal to the market that XCOR is moving ahead with its plans for commercial service and that we are nearer to that goal," said Andrew Nelson, Chief Operating Officer of XCOR. "The Series B will remain open for a limited time as we complete discussions with a few more potential investors."
Although SXC acquired a minority position without control provisions in XCOR, the company took the cautious route of submitting the investment to CFIUS for review prior to an official public announcement. CFIUS agreed that no control provisions exist and that the investment is not a so-called "covered transaction."
XCOR Aerospace: XCOR Aerospace is based in Mojave, California. It is currently creating a Research and Development Center in Midland, Texas, and will be establishing an operational and manufacturing site at the Kennedy Space Center in Florida. XCOR builds safe, reliable and reusable rocket-powered vehicles, propulsion systems, advanced non-flammable composites and rocket piston pumps. XCOR works with aerospace prime contractors and government customers on major propulsion systems, while also building Lynx. Lynx is a piloted, two-seat, fully reusable liquid rocket-powered vehicle that takes off and lands horizontally. The Lynx family of vehicles serves three primary missions depending on their specific type including: research and scientific missions, private spaceflight and micro satellite launch (only on the Lynx Mark III). Lynx production models (designated Lynx Mark II) are designed to be robust, multi-mission (research/scientific or private spaceflight) commercial vehicles capable of flying to 100+ km in altitude, up to four times per day. Lynx vehicles are available to customers in the free world on a wet-lease basis for their own manned space flight programs. Learn more at www.xcor.com.
SOURCE XCOR Aerospace