Stellantis: financing agreement in principle with Archer
(CercleFinance.com) - Archer has announced that it has reached an agreement in principle on the main terms of its planned contract manufacturing relationship with Stellantis.
In addition to the nearly $300m that Stellantis has already invested to date, including $55m in July 2024, Stellantis plans to complete new financing to ensure that Archer meets its manufacturing targets.
Stellantis will finance up to approximately $370m of the projected manufacturing labor costs required to support Archer's planned manufacturing ramp to 650 aircraft per year. In exchange, Stellantis would receive Archer shares.
In addition, Stellantis will contribute to the additional upfront manufacturing capital expenditures for the initial ramp-up of Midnight production, estimated at $20m.
Archer's objective with this relationship is to incentivize Stellantis to help achieve its ramp-up goals.
Accordingly, Archer intends to issue $30m in performance warrants that will vest based on Stellantis achieving certain performance milestones under the contract manufacturing relationship.
Archer also reported that Future Flight Global will purchase up to 116 Midnight aircraft for $580 million, bringing backlog to nearly $6bn.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
In addition to the nearly $300m that Stellantis has already invested to date, including $55m in July 2024, Stellantis plans to complete new financing to ensure that Archer meets its manufacturing targets.
Stellantis will finance up to approximately $370m of the projected manufacturing labor costs required to support Archer's planned manufacturing ramp to 650 aircraft per year. In exchange, Stellantis would receive Archer shares.
In addition, Stellantis will contribute to the additional upfront manufacturing capital expenditures for the initial ramp-up of Midnight production, estimated at $20m.
Archer's objective with this relationship is to incentivize Stellantis to help achieve its ramp-up goals.
Accordingly, Archer intends to issue $30m in performance warrants that will vest based on Stellantis achieving certain performance milestones under the contract manufacturing relationship.
Archer also reported that Future Flight Global will purchase up to 116 Midnight aircraft for $580 million, bringing backlog to nearly $6bn.
Copyright (c) 2024 CercleFinance.com. All rights reserved.