Key Points
- Archer Aviation raised $850 million through a direct offering of 85 million shares at $10 each.
- The stock dropped 15% due to concerns over share dilution despite positive policy news.
- The White House launched an eVTOL pilot program, which is expected to boost the long-term prospects for the sector.
- Pro forma liquidity now stands at approximately $2 billion, enabling global and domestic expansion.
Archer Aviation Inc. (NYSE: ACHR) saw its shares fall by 15% on Friday after the company announced an $850 million capital raise through a registered direct offering. The electric vertical takeoff and landing (eVTOL) aircraft manufacturer issued 85 million shares at $10 per share, sparking concerns among investors about potential share dilution.
The fundraising effort coincided with a major policy win for the industry—an Executive Order by President Trump to establish an eVTOL Integration Pilot Program. The program aims to expedite the deployment and integration of eVTOL aircraft into the U.S. transportation system. Despite the long-term positive implications of this federal support, the immediate market reaction focused on the dilution risk posed by the new share issuance.
Archer emphasized that the new funding would significantly bolster its financial position, providing the company with a pro forma liquidity base of approximately $2 billion. The proceeds will be used to support general corporate operations, expand commercial infrastructure, and further develop an AI-based aviation software platform. These funds are particularly crucial as the company prepares for its high-profile role in the 2028 Los Angeles Olympic Games, where Archer will serve as the Official Air Taxi Provider for Team USA.
CEO Adam Goldstein described the White House’s Executive Order as a pivotal moment for the eVTOL industry. He said the new capital would allow Archer to execute both U.S. and international initiatives, particularly in its “Launch Edition” markets such as the United Arab Emirates (UAE).
Next week, Archer is set to present its “Midnight” aircraft at the Paris Air Show, showcasing the vehicle to officials and potential partners from over 20 countries. The presentation will feature representatives from its global partner network, with a notable presence in the UAE. Moelis & Company LLC served as the exclusive placement agent for the offering.
