Archer Aviation (NYSE:ACHR) filed today to sell up to $70 million of additional shares of its common stock. Archer is developing an electric vertical takeoff and landing (eVTOL) aircraft called the Midnight.
ACHR stock is having a rocky trading morning and is just a hair in the red today at 0.2%. However, it is down about 8% for the past five days.
Archer’s Sale of ACHR Stock
Archer stated that it could obtain as much as $70 million by selling a combination of “common stock, preferred stock or debt securities, subscription rights to… common stock, preferred stock or debt securities.” The sale of the shares, which investment bank Cantor Fitzgerald will manage, will be carried out through “at the market” offerings, Archer noted.
With at-the-market offerings, companies sell their shares at “prevailing” market prices.
Archer stated that it would use the proceeds from its offering “for general corporate purposes,” including “research and development costs, potential strategic acquisitions, services or technologies, (and) capital expenditures.”
Other Information About Archer Aviation
On Oct. 16, the company announced that it planned to launch an air taxi service in the United Arab Emirates, a very wealthy Middle Eastern country, in 2026. Archer intends to make the country its first foreign market. Also noteworthy is that the nation will provide financial support to Archer.
On Oct. 18, Archer announced that its longtime partner, Stellantis (NYSE:STLA), had purchased 12.3 million shares of ACHR stock for $5.58 per share. In the wake of the transaction, Stellantis owned 31 million shares of the aircraft maker.
A major automaker that owns the Chrysler and Fiat brands, Stellantis is helping Archer manufacture its aircraft. In June, Stellantis reported that “[c]onstruction (was) well underway” of Archer’s eVTOL factory in Covington, Georgia.
The automaker noted that its personnel were helping Archer develop “manufacturing operations.”
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
