Xeriant announced on November 13 2025 that it had reached a settlement with Auctus Fund, LLC, which ends the company’s litigation against the fund and suspends any further debt‑to‑equity conversions that had been contemplated under the prior agreement.
Under the terms of the settlement, Xeriant will issue 30 million unrestricted common shares and make cash payments totaling $3.5 million, with installments scheduled over approximately 165 days beginning on October 29 2025. The transaction reduces the company’s outstanding debt and removes a significant legal overhang that had weighed on its capital structure.
The settlement also coordinates Xeriant’s ongoing litigation with XTI Aircraft. Proceeds from the XTI lawsuit, which the company is seeking over $500 million in damages, will be allocated to Auctus Fund as part of the settlement, thereby limiting Xeriant’s future legal exposure and potential liabilities.
By resolving the dispute, Xeriant improves its liquidity position and frees management to concentrate on advancing the NEXBOARD™ certification program and accelerating commercialization of its advanced materials portfolio. NEXBOARD, an eco‑friendly construction panel made from recycled materials, is currently in the final stages of fire‑protection certification, a milestone that could unlock new revenue streams in the growing green‑building market.
Auctus Fund has faced regulatory scrutiny, with the U.S. Securities and Exchange Commission charging its principals for operating as an unregistered securities dealer. The settlement’s context underscores the complexity of Xeriant’s prior relationship with the fund and the importance of the agreement for the company’s financial stability.
CEO Keith Duffy said the settlement “meaningfully strengthens our financial position by removing a major overhang and providing clarity around our capital structure.” He added that the resolution allows the company to “channel more of our resources and attention toward advancing NEXBOARD™ certification and accelerating the commercialization of our advanced materials portfolio.”
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