Archer Closing Oversubscribed PIPE as Part of $215M Investment Round Led by Stellantis; ARK & United Are Two Key Investors in the PIPE Signifying Intersection of Innovative Financial Institutions & Traditional Aerospace Investing in Disruptive Tech
- Archer Aviation closes PIPE investment round with funding totaling over $675M and aggregate funding of $1.1B
- United Airlines strengthens its commitment to Archer by investing in the PIPE for the third time
- Archer aims to transform urban travel with electric air taxi flights that are safe, sustainable, low noise, and cost-competitive with ground transportation
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United Airlines’ investment in the PIPE is its third time investing in Archer as it originally invested
in 2021 in connection with entering into its aircraft purchase agreement with Archer for up to$25M worth of aircraft and just last year made a$1.5B pre-delivery payment for the first 100 of those aircraft$10M - In addition to ARK Investment Management LLC (“ARK”) and United Airlines, the oversubscribed PIPE financing includes participation from an impressive roster of existing and new investors, including The Boeing Company (“Boeing”) and Ken Moelis, through a related investment vehicle
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The PIPE investment combined with the
that Stellantis accelerated as part of its investment in this round under the January 2023 strategic funding agreement will bring Archer’s aggregate funding to over$70M to date$1.1B
Image depicts simulated flight (Photo: Business Wire)
“At Archer, we’re investing in changing the future of mobility, and we’re focused on building a sustainable business with huge growth potential," said Adam Goldstein, who is the founder and CEO of Archer. "You have to align yourself with investors who understand that and think long-term. I couldn’t be prouder of the investors who participated in this round as they truly understand and embrace that.”
United Airlines’ investment in the PIPE was its third time investing in Archer, strengthening its commitment to the eVTOL maker even further after it originally invested
This
Archer’s goal is to transform urban travel, replacing 60-90 minute commutes by car, with estimated 10-20 minute electric air taxi flights that are safe, sustainable, low noise and cost competitive with ground transportation. With a range of up to 100 miles, Archer’s Midnight is a piloted, four passenger aircraft designed to perform rapid back-to-back flights with minimal charge time in between flights. The Federal Aviation Administration recently issued Archer the Special Airworthiness Certificate necessary to begin flying its Midnight aircraft, as the company is targeting to begin flight test operations in the coming weeks.
Forward Looking Statements
This press release contains forward looking statements regarding future events and expectations, including statements regarding Archer’s future business plans, product roadmaps, market opportunities, the performance and development of Archer’s aircraft, cost and their impacts on the industry, and timing of the closing of the equity investment round (including the ability to obtain clearance under the Hart-Scott Rodino Act for the investment by Stellantis). 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 Archer’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are 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.
About Archer
Archer is designing and developing electric vertical takeoff and landing aircraft for use in urban air mobility networks. Archer’s mission is to unlock the skies, freeing everyone to reimagine how they move and spend time. Archer's team is based in
To learn more, visit www.archer.com.
Source: Archer
Text: ArcherIR
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Source: Archer Aviation
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