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Archer to Buy LA’s Hawthorne Airport, Lines Up Funding as Q3 Tops Estimates

The purchase gives Archer a Los Angeles base to accelerate certification work toward commercialization.

Overview

  • Archer signed definitive agreements to acquire Hawthorne Airport for $126 million to serve as an operating hub and AI testbed for its planned Los Angeles air taxi network.
  • To help fund the purchase and redevelopment, the company launched a registered direct offering of 81.25 million shares at $8, targeting approximately $171 million in net proceeds.
  • Third-quarter results showed a loss of $0.20 per share versus a larger loss expected by analysts, with cash and equivalents at $1.64 billion at quarter-end.
  • Management guided to a fourth-quarter adjusted EBITDA loss of $110 million to $140 million as the pre-revenue company progresses toward FAA approvals.
  • Shares fell roughly 9% after hours following the announcements, while ARK Investment was reported to have bought about 3.0 million shares valued near $28.8 million.