New Horizon Aircraft Ltd. (NASDAQ:HOVR), a British Columbia-based aircraft manufacturing company, has announced an amendment to the terms of its outstanding warrants. The modification was made on Thursday, removing a clause that adjusted the exercise price in specific dilutive issuances.
The affected warrants were initially issued on August 21, 2024, as part of the company's firm commitment underwritten public offering. The amendment specifically eliminates Section 3(b) from the Common Shares Purchase Warrants, which had provided for the adjustment of the exercise price in the event the company issued new Class A ordinary shares or securities convertible into Class A ordinary shares at a price below the then-current exercise price.
New Horizon Aircraft Ltd., which operates under the trading symbols HOVR for its Class A Ordinary Shares and HOVRW for its warrants, is listed on The Nasdaq Stock Market LLC. The company, previously known as Pono Capital Three, Inc., underwent a name change on May 19, 2022.
This corporate action comes as the company navigates the complexities of the financial markets and seeks to manage its capital structure post its initial public offering. The full details of the amendment can be found in the form of the Warrant Amendment included as Exhibit 10.1 in the company's 8-K filing with the Securities and Exchange Commission (SEC).
The modification of these warrants does not affect the terms of the Class A ordinary shares themselves, and the warrants remain exercisable for one Class A Ordinary Share at an exercise price of $11.50 per share. As an emerging growth company, New Horizon Aircraft Ltd. has indicated its status as such under the SEC's regulations.
The company's headquarters are located at 3187 Highway 35, Lindsay (NYSE:LNN), Ontario, with the principal executive office zip code K9V 4R1. For further inquiries, the company can be reached at the business phone number (613) 866-1935.
This news is based on a press release statement and provides a concise update on the corporate developments at New Horizon Aircraft Ltd. as of September 5, 2024.
In other recent news, New Horizon Aircraft is facing potential delisting from the Nasdaq due to non-compliance with the net income, market value of listed securities, equity, and minimum bid price standards. The company has until October 14, 2024, to submit a Compliance Plan to regain compliance with these listing standards.
The aerospace manufacturer has also been given until January 15, 2025, to meet the criterion of a share price closing at $1.00 or higher for at least ten consecutive business days.
On a positive note, the company has reported significant progress in its eVTOL prototype testing. The Cavorite X7 eVTOL design is on track for completion and testing by 2026. In the midst of these developments, New Horizon Aircraft has appointed Tom Brassington, a veteran from eVTOL developer Lilium, as its new Chief Technology Officer. His expertise is expected to advance Horizon Aircraft's engineering capabilities.
In the financial realm, Horizon Aircraft has set terms for a public offering expected to yield approximately $2.9 million. The offering includes 2.8 million Class A ordinary shares, warrants, and pre-funded warrants to purchase additional shares, with EF Hutton LLC serving as the sole book-running manager. Despite these recent developments, it is important to note that there is no assurance the company will regain compliance with the continued listing standards.
InvestingPro Insights
As New Horizon Aircraft Ltd. (NASDAQ:HOVR) continues to adjust its financial strategies, the latest InvestingPro Data shows a market capitalization of $19.27 million, indicating a relatively small-cap entity in the aerospace manufacturing sector. The company's stock is characterized by high volatility, as highlighted by an InvestingPro Tip, which may be of interest to investors looking for short-term trading opportunities or those with a higher risk tolerance.
InvestingPro Tips also suggest that while New Horizon holds more cash than debt, signaling a potentially stable financial position, it has not been profitable over the last twelve months and suffers from weak gross profit margins. This could be a concern for long-term investors seeking sustainable profitability. On a positive note, the company's liquid assets exceed its short-term obligations, which may provide some assurance regarding its ability to meet immediate financial liabilities.
For investors considering the timing of their investments, it's worth noting that the company's stock has experienced a strong return over the last month, with a price total return of 70.36%. However, the one-year price total return shows a significant decline of -91.51%, reflecting the broader challenges the company has faced. The InvestingPro Fair Value estimate stands at $0.93, which is in close proximity to the previous close price of $0.90, suggesting the stock is currently trading near its fair value.
For those interested in gaining deeper insights and more comprehensive analysis, there are additional InvestingPro Tips available at: https://www.investing.com/pro/HOVR.
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