Horizon Aircraft Announces Exercise of Warrants, Providing an Additional $2.7 Million in Gross Proceeds

Rhea-AI Summary

Horizon Aircraft (NASDAQ: HOVR) has announced the exercise of 2.5 million warrants, generating approximately $2.7 million in gross proceeds. This capital infusion follows a recent $8.4 million strategic investment, bringing the total capital raised in the last 30 days to $11.1 million.

The company, which develops hybrid electric Vertical Take-Off and Landing (eVTOL) aircraft, plans to use the strengthened balance sheet to support the development of their full-scale, 7-person hybrid eVTOL aircraft. CEO Brandon Robinson noted increasing interest and support for their practical and safe aircraft designs.

Positive

• Secured $2.7 million through warrant exercise
• Total capital raised of $11.1 million in 30 days
• Simplified capital structure
• Strengthened balance sheet

Negative

• None.

Insights

Financial Analyst

The $2.7 million warrant exercise, combined with the recent $8.4 million strategic investment, represents a substantial $11.1 million capital injection for a company with a market cap of $26.3 million. This 42% capital increase relative to market cap strengthens HOVR's financial position during a critical development phase. The warrant exercise at this stage indicates investor confidence in the company's eVTOL development trajectory. The simplified capital structure reduces financial complexity and enhances transparency for investors. However, the eVTOL sector remains highly competitive with significant capital requirements - this funding, while positive, represents only a fraction of the total investment typically needed to bring an aircraft to market. The cash infusion provides important runway for development but investors should monitor burn rate and future capital needs carefully.

Tech Expert

The capital injection comes at a pivotal time for Horizon's 7-person hybrid eVTOL development program. Hybrid electric systems offer significant advantages over pure electric designs, including extended range and reduced battery dependency. The focus on "practical and safe aircraft designs" suggests a pragmatic approach to certification and commercialization, differentiating from more experimental eVTOL concepts. The development of a 7-person aircraft targets the lucrative urban air mobility market segment, positioning between personal air vehicles and larger commercial operations. The continued investor support validates the technical approach, but the real challenge lies in achieving certification and scaling production. The $11.1 million funding will likely accelerate development milestones, though additional capital raises may be necessary as the program progresses through certification phases.

~ Further Secures Balance Sheet, This Second Capital Infusion in Last 30 Days Totals $11.1 Million ~

TORONTO, Jan. 08, 2025 (GLOBE NEWSWIRE) -- New Horizon Aircraft Ltd. (NASDAQ: HOVR), doing business as Horizon Aircraft (“Horizon Aircraft” or the “Company”), a leading hybrid electric Vertical Take-Off and Landing (“eVTOL”) aircraft developer, announced today the exercise of 2.5 million warrants for gross proceeds of approximately $2.7 million. This additional working capital follows the Company’s recent announcement of a strategic investment of $8.4 million, totaling $11.1 million of capital infusion in the last 30 days.

Brandon Robinson, CEO and Co-founder of Horizon Aircraft, stated, “With support from a dedicated cohort of investors, we’ve simplified our capital structure and further strengthened our balance sheet to aid in the development of our full-scale, 7-person hybrid eVTOL aircraft. We have an exciting 2025 ahead and are encouraged by the increasing interest and support for practical and safe aircraft designs.”

About Horizon Aircraft

Horizon Aircraft (NASDAQ: HOVR) is an advanced aerospace engineering company that is developing one of the world’s first hybrid eVTOL aircraft that is expected to perform most missions similar to a traditional aircraft while offering industry-leading speed, range, and operational utility. Horizon’s unique designs put the mission first and prioritize safety, performance, and utility. Visit www.horizonaircraft.com for more information.

Forward-Looking Statements

The information in this press release contains certain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “aim,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result” and similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) changes in the markets in which Horizon competes, including with respect to its competitive landscape, technology evolution or regulatory changes; (ii) the risk that Horizon will need to raise additional capital to execute its business plans, which may not be available on acceptable terms or at all; (iii) the ability of the parties to recognize the benefits of the business combination agreement and the business combination; (iv) the lack of useful financial information for an accurate estimate of future capital expenditures and future revenue; (v) statements regarding Horizon’s industry and market size; (vi) financial condition and performance of Horizon, including the anticipated benefits, the implied enterprise value, the expected financial impacts of the business combination, the financial condition, liquidity, results of operations, the products, the expected future performance and market opportunities of Horizon; (vii) Horizon’s ability to develop, certify, and manufacture an aircraft that meets its performance expectations; (viii) successful completion of testing and certification of Horizon’s Cavorite X7 eVTOL; (ix) the targeted future production of Horizon’s Cavorite X7 aircraft; and (x) those factors discussed in our filings with the SEC. You should carefully consider the foregoing factors and the other risks and uncertainties that will be described in the “Risk Factors” section of the Proxy Statement and other documents to be filed by New Horizon from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward- looking statements, and while Horizon may elect to update these forward-looking statements at some point in the future, they assume no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law. Horizon does not give any assurance that Horizon will achieve its expectations.

Investor Contact

MZ Group
Phone: (203) 741-8841
HorizonAircraft@mzgroup.us

FAQ

How much capital did Horizon Aircraft (HOVR) raise through warrant exercise in January 2025?

Horizon Aircraft raised approximately $2.7 million through the exercise of 2.5 million warrants in January 2025.

What is the total amount of capital Horizon Aircraft (HOVR) raised in the past 30 days?

Horizon Aircraft raised a total of $11.1 million in the past 30 days, combining the $2.7 million from warrant exercise and an $8.4 million strategic investment.

What will Horizon Aircraft (HOVR) use the new capital for?

The new capital will be used to aid in the development of their full-scale, 7-person hybrid eVTOL aircraft.

How many warrants were exercised in Horizon Aircraft's (HOVR) January 2025 funding round?

2.5 million warrants were exercised in Horizon Aircraft's January 2025 funding round.