Archer Aviation Inc. ACHR shares are trading lower on Thursday.
The company announced a new exclusive partnership with Anduril Industries to develop a hybrid Vertical Take-Off and Landing (VTOL) aircraft for defense applications.
To support this program and for general corporate purposes, Archer raised $430 million in additional equity capital. This raise brings the company’s total capital raised to nearly $2 billion, with backing from investors such as Stellantis, United Airlines, Wellington Management, and the UAE’s 2PointZero.
This collaboration aims to target a potential program of record from the U.S. Department of Defense (DoD), leveraging Archer’s capability to rapidly design advanced VTOL aircraft using commercial parts and supply chains, combined with Anduril’s expertise in artificial intelligence and systems integration.
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The partnership is expected to accelerate the development and deployment of hybrid VTOL aircraft, offering a cost-effective alternative to traditional defense technologies.
As part of this initiative, Archer has launched its new Archer Defense program, with plans to address urgent national security needs.
Archer’s SVP of Engineering, Shane Arnott, emphasized the importance of rapid innovation and scalable production in maintaining technological superiority. Adam Goldstein, Archer’s CEO, highlighted the company’s expertise in producing next-generation vertical-lift aircraft, which will be accelerated with Anduril’s support and the new funding.
The Archer Defense program will be led by Joseph Pantalone, a seasoned military aviation leader with nearly 30 years of experience at Lockheed Martin and Sikorsky, and supported by Archer’s Defense Advisory Board.
Price Action: ACHR shares are trading lower by 2.17% to $7.23 at last check Thursday.
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