Archer Aviation raises $430 mln through equity offering, partners with Anduril
Adds share movement in paragraph 2
By Anshuman Tripathy
Dec 12 (Reuters) -Air-taxi maker Archer Aviation ACHR.N said on Thursday it has raised $430 million in fresh capital, part of which will be used to develop a hybrid aircraft with defense tech company Anduril Industries.
Shares of Archer were down 4% in early trading.
Existing investors United Airlines UAL.O and Stellantis STLAM.MI as well as new backers such as Wellington Management and Abu Dhabi investment holding company 2PointZero participated in the fundraising, which was through an equity offering.
Anduril, which was founded by entrepreneur Palmer Luckey, and Archer said the aircraft would target a potential "program of record" — a government approved and authorized acquisition program — from the Pentagon.
The companies did not disclose any details of the vertical takeoff and landing aircraft, including its target entry-into-service date or the investment involved.
"With Anduril by our side, and this new influx of capital, we will accelerate the development and deployment of advanced aerospace technologies at scale," said Archer Aviation CEO Adam Goldstein.
Industry executives have said U.S. President-elect Donald Trump's planned government efficiency drive involving Tesla CEO Elon Musk could lead to more joint projects between big defense contractors and smaller tech firms in areas such as artificial intelligence, drones and uncrewed submarines.
The latest fundraising also comes when the electric vertical takeoff and landing (eVTOL) industry faces a cash crunch as technological and regulatory hurdles weigh on the sector, though analysts have said Archer is among the best-positioned to operate long enough to at least achieve certification.
Archer, which is also developing a five-seater commercial eVTOL aircraft, said the new fundraising would eliminate any near-term financing needs.
The San Jose, California-based air-taxi maker ended the third quarter with $502 million of cash and cash equivalents. The latest funding brings Archer's total capital raised to nearly $2 billion to date.
Reporting by Anshuman Tripathy and Abhijith Ganapavaram in Bengaluru; Editing by Shilpi Majumdar
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
