Archer Aviation (NYSE:ACHR) shares fell more than 13% after the electric air taxi developer announced plans to raise $850 million through the sale of 85 million shares priced at $10 each to institutional investors.
This was below the company’s closing share price on Thursday of $11.73.
On a positive note, the company now has a stronger balance sheet with approximately $2 billion in liquidity.
The $850 million fundraising will support the company’s plans to ramp up its operations in the US ahead of the 2028 Olympic Games, at which Archer will serve as the Official Air Taxi Provider.
This comes after President Donald Trump signed an Executive Order to implement an eVTOL Integration Pilot Program in the US, aimed at accelerating the employment of eVTOL aircraft.
“This Executive Order is a seminal moment for Archer and the eVTOL industry,” Archer CEO Adam Goldstein said in a statement.
“We now have the strongest balance sheet in the sector and the resources we need to execute both here in the US and abroad. Archer’s future couldn’t be any brighter.”
Shares of Archer Aviation moved 13.3% lower to about $10 on Friday morning.