SAN JOSE, CA - Archer Aviation Inc. (NYSE:ACHR), a company specializing in aircraft manufacturing, announced today that its Chief Financial Officer, Mark Mesler, will be on temporary medical leave effective today. The company expects Mesler to return to his role in the first quarter of 2025.
During Mesler's absence, Priya Gupta, the current Vice President of Finance, will step in as the acting Chief Financial Officer and acting principal financial officer.
Gupta has been with Archer since April 2022 and previously held a similar position at Volansi, Inc. She brings a wealth of experience from her senior finance roles at Bloom Energy (NYSE:BE) Corporation. Gupta is a seasoned professional with a B.A. in Economics from Delhi University and an M.B.A. from Purdue University Daniels School of Business.
In legal developments, the United States District Court for the Northern District of California has ruled in favor of immediate exercisability of the second tranche of warrants issued by Archer to Wisk Aero LLC, as part of a settlement agreement dated August 2023. The court also ordered Archer to pay Wisk prejudgment interest for the period starting March 21, 2024, until the court hearing on August 14, 2024, at a daily rate of $11,912.53.
Archer's leadership transition and legal proceedings are part of the company's latest updates filed with the SEC. The company has issued forward-looking statements regarding Mesler's anticipated return and other business matters, noting that actual results may vary due to a number of risks and uncertainties.
In other recent news, Archer Aviation has surpassed its goal of 400 test flights for the year 2024 well ahead of schedule, with 402 flights conducted. The company has also delivered its first aircraft to the United States Air Force under a contract potentially worth up to $142 million.
Archer Aviation has also established a memorandum of understanding with Future Flight Global for a potential sale of up to 116 Midnight electric vertical take-off and landing (eVTOL) aircraft, in a deal that could be worth as much as $580 million.
Simultaneously, Archer Aviation has raised $230 million in equity capital and secured a manufacturing agreement with Stellantis (NYSE:STLA), which includes nearly $400 million in funding. The company ended Q2 with $360.4 million in cash and equivalents and anticipates Q3 2023 operating expenses to be between $80 million and $95 million.
In terms of analyst ratings, Canaccord Genuity has adjusted its stock price target for Archer Aviation to $7.50, down from $9.00, while retaining a Buy rating. Similarly, H.C. Wainwright initiated coverage on Archer Aviation with a Buy rating and a price target of $12.50.
Archer Aviation is also working towards Federal Aviation Administration (FAA) certification for its Midnight eVTOL aircraft and has plans to enter international markets, including India, the United Arab Emirates, and South Korea by 2026.
InvestingPro Insights
As Archer Aviation Inc. (NYSE:ACHR) navigates through its CFO's medical leave and recent legal rulings, investors may find it advantageous to consider the company's financial health and market performance. According to InvestingPro data, Archer holds a market capitalization of $142.22 million, but it's worth noting that the company's P/E ratio stands at -0.3, reflecting its current lack of profitability. Additionally, the stock's price movements have shown significant volatility, with a 1-year price total return of -54.48%, underscoring the stock's recent challenges in the market.
InvestingPro Tips reveal that Archer Aviation Inc. has more cash than debt on its balance sheet, which could provide some financial flexibility during this transitional period. However, the company is also quickly burning through cash, and analysts do not anticipate profitability this year. With 2 analysts having revised their earnings upwards for the upcoming period, there is a glimmer of optimism amidst the concerns. For those interested in digging deeper, there are 15 additional InvestingPro Tips available, which could offer further insights into Archer's financial position and future prospects.
For investors and stakeholders, these metrics and insights could be pivotal in assessing the impact of the company's leadership changes and legal developments on its financial stability and stock performance. For a more comprehensive analysis, including additional InvestingPro Tips, visit: https://www.investing.com/pro/ACHR.
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