Archer has raised a significant amount of capital, raising $301.75 million, boosting its total liquidity to $1 billion. This new round of funding, which included the participation of renowned institutional investors such as BlackRock, is intended to accelerate the development of its hybrid aircraft platform , with a view to a greater presence in the defense sector.
A firm commitment to defense with hybrid aircraft
Since launching its Archer Defense division in December, the company has been developing hybrid-powered vertical-lift aircraft aimed at military applications. Archer CEO Adam Goldstein said the defense market potential has exceeded his expectations, driving the need for investment in key technologies such as advanced composites and high-performance batteries.
[post_relacionado]With this additional capital, Archer will strengthen its manufacturing capabilities and advance FAA certification for the commercialization of its aircraft. The completion of its ARC production facility and the establishment of a consortium in the United Arab Emirates reinforce its global growth strategy.
Financial impact and future plans
In financial terms, the company has reported that its GAAP operating expenses for the fourth quarter of 2024 will range between $120 million and $140 million, while non-GAAP operating expenses will be in line with its guidance of $95 million to $110 million. Archer expects that first quarter 2025 expenses will remain within these ranges.
The Class A common stock was offered at $8.50 per share in a registered direct offering, with the proceeds earmarked to bolster its hybrid aircraft production and aerospace positioning.
This move cements Archer as a key player in the transition to more efficient and versatile aircraft, with a particular focus on the defence market, where demand for innovative solutions continues to rise.
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Source and photo: Archer