Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Archer Aviation Inc. (NYSE: NYSE:ACHR) stock fell 15% on Friday after the electric vertical takeoff and landing (eVTOL) aircraft maker announced it raised $850 million through a registered direct offering of 85 million shares at $10 per share.
The capital raise comes shortly after the White House announced an Executive Order by President Trump to implement an eVTOL Integration Pilot Program aimed at accelerating deployment of these aircraft in the U.S. Despite the positive policy development, investors appeared concerned about the dilutive effect of the share issuance.
Archer stated that the new capital strengthens its balance sheet, giving the company a pro forma liquidity position of approximately $2 billion. The funds will be used for general corporate purposes, with emphasis on building out commercial capabilities and infrastructure to support recently announced initiatives both domestically and in its "Launch Edition" markets, as well as developing an AI-based aviation software platform.
CEO and founder Adam Goldstein called the Executive Order "a seminal moment for Archer and the eVTOL industry," noting that the company now has "the resources we need to execute both here in the U.S. and abroad."
Archer plans to coordinate with the White House, Department of Transportation, and Federal Aviation Administration on integrating the pilot program into its operations ahead of the LA 28 Olympic Games, where it will serve as the Official Air Taxi Provider for the Games and Team USA.
Next (LON:NXT) week, the company will showcase its Midnight aircraft at the Paris Air Show, hosting delegations from more than 20 countries, including leadership from partner organizations in the UAE, Archer’s first target "Launch Edition" market. Moelis (NYSE:MC) & Company LLC acted as the exclusive placement agent for the offering.