Archer has announced a successful funding round of US$301.75 million, further strengthening its financial position and enabling the acceleration of its hybrid aircraft platform development for the defence sector and beyond. Leading institutional investors, including funds and accounts managed by BlackRock, participated in the financing. This latest capital injection brings Archer's total liquidity to approximately US$1 billion, reinforcing its already strong balance sheet.
In December, Archer launched Archer Defense to develop next-generation aircraft for defence applications. The division's first product is expected to be a hybrid-propulsion, vertical take-off and landing aircraft.
Adam Goldstein, founder and CEO of Archer, stated: “I believe the opportunity for advanced vertical lift aircraft across defence appears to be substantially larger than I originally expected. 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.”
With this reinforced balance sheet, Archer remains well-positioned for commercialisation. It continues to advance towards its FAA certification, has completed construction of its ARC manufacturing facility, and has launched a cross-industry consortium in the UAE, all aligning with its 2025 goals and beyond.
Archer has also released its preliminary estimated financial results for Q4 2024, reporting GAAP operating expenses between US$120 million and US$140 million and non-GAAP operating expenses aligning with guidance at US$95 million to US$110 million. The company does not expect a material increase in non-GAAP operating expenses in Q1 2025.
The funding was secured through the purchase and sale of 35,500,000 shares of Archer's Class A common stock at US$8.50 per share, based on a volume-weighted average price. The net proceeds will support next-generation aircraft manufacturing capabilities, including batteries and composites, with the remainder allocated for general corporate purposes. The shares were offered under an automatic shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) on February 11, 2025. Moelis & Company LLC is acting as the exclusive placement agent for the offering.
