Archer announced that it raised $301.75 million to develop its hybrid aircraft platform for the defense market and beyond. The funds bring Archer’s total liquidity position to approximately $1 billion.
The company launched Archer Defense in December to develop next-generation aircraft for defense applications. The first product from this division is planned to be a hybrid-propulsion, vertical-take-off-and landing aircraft.
“I believe the opportunity for advanced vertical lift aircraft across defense appears to be substantially larger than I originally expected," Archer founder and CEO Adam Goldstein said. "As a result, we are raising additional capital to help us invest in critical capabilities like composites and batteries to help enable us to capture this opportunity and more.”
Archer also released its preliminary estimated financial results for the fourth quarter of 2024, reporting that its GAAP operating expenses will be within the range of $120 million to $140 million and total non-GAAP operating expenses are in line with its guidance range of $95 million to $110 million. The company confirmed that it does not expect that its total non-GAAP operating expenses for the first quarter of 2025 will materially increase over this Q4 guided range.
The financing provided for the purchase and sale of 35,500,000 shares of Archer’s Class A common stock at a price of $8.50 per share based on a volume-weighted average price of the Class A common stock, in a registered direct offering. The net proceeds from the offering will be used for the development of next generation aircraft manufacturing capabilities related to this effort, including batteries and composites and the remainder for general corporate purposes.
