Shares of Archer Aviation Inc. (NYSE:ACHR) dropped 15% on Friday following the company’s announcement of an $850 million capital raise through a registered direct offering. The deal involved the sale of 85 million shares at $10 each.

The move bolsters Archer’s liquidity position to approximately $2 billion on a pro forma basis, but the significant dilution appeared to concern investors, overshadowing recent favorable policy news from Washington. The White House had recently unveiled an Executive Order from former President Donald Trump initiating an eVTOL Integration Pilot Program, designed to accelerate the rollout of electric vertical takeoff and landing aircraft across the U.S.

Despite the market reaction, Archer emphasized that the new funding would be allocated to expanding its commercial infrastructure and supporting ongoing projects both in the U.S. and abroad. The company is also advancing development of an AI-powered aviation software platform.

CEO Adam Goldstein hailed the executive directive as a “historic turning point” for the eVTOL sector, adding that the new capital gives Archer the means to deliver on its ambitious goals, including international expansion.

Archer intends to work closely with federal agencies such as the Department of Transportation and the FAA to integrate the pilot program into its operations ahead of the 2028 Summer Olympics in Los Angeles, where it is slated to serve as the Official Air Taxi Provider for Team USA and the event.

Looking ahead, Archer will present its Midnight aircraft at the upcoming Paris Air Show. The event will host delegations from over 20 countries, including representatives from the UAE, which is among the first “Launch Edition” markets targeted by the company. Moelis & Company (NYSE:MC) served as the exclusive placement agent for the share offering.

Archer Aviation stock price