Archer Closes PIPE As Part Of $230M In Capital Raised Since End Of Q2, Giving It One Of The Strongest Liquidity Positions In Its Industry
22 Agosto 2024 - 3:00PM
Business Wire
- Archer Aviation today announced the closing of the PIPE
investment it previously announced as part of its Q2’24 earnings,
with participation by longtime strategic investors United Airlines
and Stellantis, as well as institutional investors.
- This additional capital gives Archer one of the strongest
liquidity positions in its industry and brings Archer’s aggregate
funding to over $1.5B to date
- Archer also recently announced it reached the key terms of an
agreement with Stellantis for the contribution of significant
capital in the form of labor and capital expenditures to help scale
Archer’s Midnight manufacturing. This strategic funding arrangement
is intended to give Archer the ability to access up to an
additional $400M in capital in exchange for Archer equity at future
stock prices with the goal of minimizing dilution
Archer Aviation this week announced that it has now closed on
$220M of this $230M of additional capital raised since the end of
Q2, with $10M remaining in the form of a committed investment from
Stellantis that remains subject to shareholder approval which is
expected to occur later this year.
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Archer Aviation today announced the
closing of the PIPE investment it previously announced as part of
its Q2’24 earnings, with participation by longtime strategic
investors United Airlines and Stellantis, as well as institutional
investors. (Photo: Business Wire)
When combined with the $360M of cash on hand at the end of
Q2’24, Archer now maintains one of the strongest liquidity
positions in the industry as it rapidly advances its
industrialization and commercialization.
This is United Airlines’ third time investing in Archer,
originally investing in 2021 in connection with the signing of its
conditional aircraft purchase agreement. In 2022, United Airlines
made a pre-delivery payment for the first 100 of those
aircraft.
Along with this additional capital, Archer also recently
announced it had reached the key terms of an agreement with
Stellantis for the contribution of significant capital in the form
of labor and capital expenditures to help scale the manufacturing
of Archer’s aircraft, Midnight. This strategic funding arrangement
is intended to give Archer the ability to access up to an
additional $400M in capital in exchange for Archer equity at future
stock prices with the goal of minimizing dilution.
Archer’s high-volume manufacturing facility in Covington, GA, is
scheduled to open by the end of the year.
“As we advance towards commercialization, this renewed equity
support from partners like United Airlines and Stellantis is a
powerful endorsement that solidifies Archer’s position as one of
the most well-capitalized in the industry,” said Archer CEO and
Founder Adam Goldstein.
With this capital and the expanded manufacturing partnership
with Stellantis, Archer is now well-positioned to execute its
planned path to reach commercialization of its electric vertical
take-off and landing aircraft, Midnight. Moelis & Company acted
as the sole placement agent for the transaction, providing
strategic advice and support throughout the process.
This capital raise announcement follows Archer’s planned network
in Los Angeles and its recently announced developments with
Southwest Airlines and United Airlines. It also follows major
milestones, such as a successful transition flight, certification
to begin operating as a commercial airline and the recent delivery
of its first aircraft to the United States Air Force.
*The key terms of the contract manufacturing relationship with
Stellantis is based on an agreement in principle that contemplate
the parties to enter into future definitive agreements related
thereto
About Archer
Archer is a leader in the electrification of aviation. We are
designing and developing the key enabling technologies and aircraft
necessary to power the next great transportation revolution. Our
goal is for our proprietary technology to deliver unprecedented
connectivity to the people and places across the most congested
cities in the world.
To learn more, visit www.archer.com.
Source: Archer Text: ArcherIR
Forward-Looking Statements
This press release contains forward-looking statements regarding
Archer’s future business plans and expectations, including
statements regarding our business strategy and plans, aircraft
performance, the design and target specifications of our aircraft,
the pace at which we intend to design, develop, certify, conduct
test flights, manufacture and commercialize our planned eVTOL
aircraft, business opportunities, future equity issuances, and the
timing of the completion of our manufacturing facility. In
addition, this press release refers to agreements with Stellantis
on certain key terms which are conditioned on the future execution
by the parties of additional binding definitive agreements
incorporating those terms, which definitive agreements may not be
completed or may contain different terms. These forward-looking
statements are only predictions and may differ materially from
actual results due to a variety of factors. The risks and
uncertainties that could cause actual results to differ from the
results predicted are more fully detailed in our filings with the
Securities and Exchange Commission (SEC), including our most recent
Annual Report on Form 10-K and most recent Quarterly Report on Form
10-Q, which are or will be available on our investor relations
website at investors.archer.com and on the SEC website at
www.sec.gov . In addition, please note that any forward-looking
statements contained herein are based on assumptions that we
believe to be reasonable as of the date of this press release. We
undertake no obligation to update these statements as a result of
new information or future events.
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