Archer Aviation lands 1 billion dollar order from United Airlines. As well as a SPAC agreement with ACIC.
Link to story:
[https://techcrunch.com/2021/02/10/archer-lands-1-1b-order-from-united-airlines-and-a-spac-deal/](https://techcrunch.com/2021/02/10/archer-lands-1-1b-order-from-united-airlines-and-a-spac-deal/)
Key takeaways:
" The company said it expected to receive $1.1 billion of gross proceeds, including $600 million in private investment in public equity, or PIPE, from investors such as United Airlines, Stellantis and the venture arm of Exor, Baron Capital Group, the Federated Hermes Kaufmann Funds, Mubadala Capital, Putnam Investments and Access Industries. Ken Moelis and affiliates, along with Marc Lore, who is one of Archer’s primary and initial backers, are investing $30 million in the PIPE."
" Separately, the Palo Alto, California-based startup announced that United Airlines agreed to invest in the company. Under the terms of its agreement, United has placed an order for $1 billion of Archer’s aircraft. United has the option to buy an additional $500 million of aircraft."
" Archer has yet to mass produce its electric vertical take-off and landing aircraft, which IS designed to travel up to 60 miles on a single charge at speeds of 150 miles per hour. Archer plans to unveil its full-scale eVTOL later this year and is aiming to begin volume manufacturing in 2023."
Other takeaways from the CEO's interview on bloomberg this morning:
\-This can be disrupter to the helicopter industry
\-The vehicle has no single point of failure unlike helicopters
\-Is built to fit on a standard Churchill helipad
\-Electric (green baby)
\-Quiet (this is important for cities those helicopters on the FDR are loud AF)
\*This should not be considered financial advice. I am not suggesting anyone invest. I am not a financial advisor.
\*Most SPAC Investments contain significant Risk.
\*Most Startups contain significant risk.
\*Almost every "flying car" has failed.
\*Full Disclosure: As of today I taken a position in the ACIC.
https://www.reddit.com/r/StockMarket/comments/lhoqqz/archer_aviation_lands_1_billion_dollar_order_from/
