Horizon Aircraft raises $25M in registered direct offering for eVTOL prototype

New Horizon Aircraft Ltd. raised $25 million in a registered direct offering of 9.96 million Class A Ordinary Shares to institutional investors.

"This financing reflects strong continued support from our existing institutional investors and further validates the strategic significance of Horizon Aircraft's next-generation aerospace platform," Brandon Robinson, co-founder and chief executive officer of Horizon Aircraft, said.

The offering, which closed May 27, involved the same institutional investors from a May 8 offering. Titan Partners, a division of American Capital Partners, acted as sole placement agent. The shares were offered under an effective shelf registration statement on Form S-3 initially filed with the Securities and Exchange Commission on Feb. 14, 2025, and declared effective March 25, 2025.

The company plans to use the net proceeds to fully fund completion of its Cavorite X7 hybrid-electric vertical takeoff and landing prototype and advance the program toward testing, certification and commercial production.

Horizon Aircraft (NASDAQ:HOVR) is developing one of the first hybrid-electric VTOL aircraft designed to fly most of its mission in traditional wing-borne flight. The Toronto-based company targets regional aircraft operators, emergency service providers and military customers.

The offering was led by the company's largest existing US institutional shareholders, according to a May 26 statement.

The capital raise gives Horizon Aircraft funding runway through a critical development phase, though it dilutes existing shareholders by roughly 9.96 million shares. Investors will watch for progress milestones on the Cavorite X7 prototype in coming quarters.

This article is for informational purposes only and does not constitute investment advice.