Archer Aviation Shares Slip on Boeing Deal Dilution Concerns

Archer Aviation Inc., trading on the NYSE under ticker ACHR, closed at $6.32 on August 18, down 1.1% from the previous day's close. The session was relatively calm following last week's surge sparked by its deal with Boeing Co.

The agreement between Archer and Boeing will see Boeing obtain new shares equivalent to 19.75% of Archer's Class A share count before closing. This represents a significant dilution challenge for existing shareholders, who will hold approximately 83.5% of the company after the transaction.

However, the deal also brings in substantial revenue potential, with Insitu, one of the acquired companies, generating over $200 million in annual revenue. Archer's own second-quarter revenue was a modest $5 million, but the acquisition is expected to boost defense sales prior to Midnight achieving commercial scale.