Archer Aviation’s $430M Fund-Raise Triggers Stock Dip, But Retail Shrugs It Off
By Stocktwits Inc | First Published Dec 12, 2024, 11:28 PM ISTArcher also said it has entered into an agreement with Anduril Industries Inc. to jointly develop a next-generation aircraft for defense applications.
Shares of Archer Aviation Inc (ACHR) were trading nearly 7% lower on Thursday after the firm announced $430 million in additional equity capital fund-raise.
Archer said it has entered into an agreement with Anduril Industries Inc. to jointly develop a next-generation aircraft for defense applications.
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Their first product from the partnership is planned to be a hybrid-propulsion, vertical-take-off-and-anding (VTOL) aircraft that will target a potential program of record from the United States Department of Defense.
Archer said the fund-raise will support this initiative as well as other corporate purposes. The transaction saw participation from Stellantis, United Airlines, and new institutional investors, including Wellington Management and Abu Dhabi investment holding company 2PointZero, a subsidiary of UAE’S largest listed entity, IHC.
The company ended the third quarter of 2024 with $502 million of cash and cash equivalents on its balance sheet. The latest fund-raise brings its total capital raised to nearly $2 billion to date.
CEO Adam Goldstein highlighted that the Archer team has deep expertise in the rapid design, engineering, and production of next-generation vertical-lift aircraft.
“With Anduril by our side, and this new influx of capital, we will accelerate the development and deployment of advanced aerospace technologies at scale,” he said.
Despite the slide in stock price, retail sentiment on Stocktwits climbed into the ‘bullish’ territory (58/100) from ‘neutral’ a day ago.
Retail chatter on the platform indicated support for the stock, and many users chose to overlook the day’s decline in stock price.
Notably, Archer recently signed an agreement with cross-industry stakeholders to launch the first commercial electric air taxi flights in Abu Dhabi and establish the first manufacturer of vertical electric vehicles in the Middle East and North Africa (MENA) region.
Meanwhile, shares of the company have gained over 18% since the beginning of the year.
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