Archer Aviation Inc. (NYSE:), a leading aircraft manufacturer with a market capitalization of $1.7 billion and an impressive 225% stock price surge over the past six months, has announced significant corporate changes following a special meeting of stockholders.
The company has increased its authorized shares of Class A common stock from 700 million to 1.4 billion, as approved by stockholders on Monday. According to InvestingPro analysis, the stock currently trades at $11.18, near its 52-week high of $11.36.
The San Jose-based company, previously known as Atlas (NYSE:) Crest Investment Corp., also made amendments to its bylaws and certificate of incorporation to comply with U.S. air carrier ownership regulations. These changes, effective December 26, 2024, were voted on during the special meeting held on December 20, 2024.
The modifications include restrictions on voting, ownership, and control by non-U.S. citizens to ensure compliance with federal law and the U.S. Department of Transportation’s requirements. Specifically, two-thirds of the board members and officers, including pivotal roles such as CEO, President, and Board Chairperson, must now be U.S. citizens. Furthermore, non-citizen ownership of voting stock is capped at 25%, with automatic suspension of voting rights for shares exceeding this limit.
Additionally, the company has established a separate stock record to monitor foreign ownership, with a duty placed on non-citizen stockholders to register their shares. Any stock transfers or issuances that would breach the set foreign ownership restrictions will be considered void.
These corporate governance changes reflect Archer Aviation’s commitment to adhering to U.S. regulations as it continues to grow its operations. With a strong current ratio of 6.03 and more cash than debt on its balance sheet, the company maintains a solid financial position.
The company’s stockholders also approved the potential issuance of shares to Stellantis N.V. (NYSE:) under a subscription agreement and related warrants, subject to New York Stock Exchange rules. For deeper insights into Archer Aviation’s financial health and growth prospects, InvestingPro subscribers can access the comprehensive Pro Research Report, which provides expert analysis on this and 1,400+ other top stocks.
The information presented in this article is based on a press release statement from Archer Aviation Inc. and documents filed with the U.S. Securities and Exchange Commission.
In other recent news, Archer Aviation has made significant strides in its operations. The company announced the completion of its high-volume manufacturing facility, ARC, marking a crucial transition from research and development to commercialization.
The facility is set to commence production of Archer’s all-electic vertical take-off and landing aircraft, Midnight, in early 2025. This development is part of a broader partnership with automotive giant Stellantis, aiming to scale the facility to an annual output of 650 aircraft by 2030.
Archer Aviation also announced an exclusive partnership with defense contractor Anduril Industries, aiming to develop an unmanned hybrid vertical takeoff and landing (VTOL) aircraft for defense applications. This collaboration led to the formation of Archer Defense and was followed by an upgrade in the company’s price target by Canaccord Genuity.
The company further expanded its reach by securing a multi-party collaboration agreement with entities in the United Arab Emirates and Abu Dhabi to establish electric air taxi operations in the region. This makes Archer the first eVTOL aircraft manufacturer in the Middle East and North Africa region.
These developments reflect Archer Aviation’s ongoing efforts to revolutionize urban air mobility and its readiness for commercial electric aviation. The company also reported a strong liquidity position with over $500 million in cash reserves, indicating ample liquidity to fund its expansion plans.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
