Archer Aviation Inc (NYSE: ACHR) shares sank 13% in early trading on Friday after electric vertical takeoff and landing (eVTOL) aircraft developer announced that it has signed a series of definitive agreements to acquire control of Hawthorne Airport in Los Angeles for $126 million in cash.
The company said the airport will serve as an operational hub for its planned LA air taxi network operations.
The Hawthorne Airport, also known as Jack Northrop Field, was built in the 1920s and is the closest airport to downtown LA.
Archer noted that it will fund the acquisition with a $650 million equity raise.
The company also posted a third quarter 2025 net loss of $129.9 million, better than the $178.6 million deficit expected by Wall Street, according to FactSet.