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Archer Moves to Buy Hawthorne Airport and Launches $650 Million Equity Sale for LA Air-Taxi Hub

Investor backlash to the share sale highlights lingering approval and execution hurdles.

Overview

  • Archer signed definitive agreements to acquire control of Hawthorne Municipal Airport for $126 million in cash to anchor a Los Angeles eVTOL hub and serve as an AI operations testbed.
  • The company announced a 81.25 million–share offering totaling $650 million, which it says lifts liquidity to more than $2 billion.
  • Shares fell in the low-to-mid double digits after the announcements as analysts flagged dilution and reset price targets.
  • The airport deal remains subject to closing conditions, including approval by the City of Hawthorne, and Archer plans to use the site to support LA28 operations.
  • Archer closed its purchase of Lilium’s patent portfolio, taking its IP to over 1,000 assets, and reported Midnight test milestones including a 55-mile piloted flight, 10,000 feet altitude and speeds above 126 mph.