Atlas Crest Investment scheduled a Sept. 14 meeting for stockholders to vote on the proposed business combination with Archer Aviation. Atlas Crest has filed a definitive proxy statement/prospectus on the deal.
Last month the electric aircraft startup and Atlas Crest announced a downward revision of the transaction’s valuation. The new terms cut Archer’s pro forma enterprise value from $2.7 billion to $1.7 billion.
“This strategic decision was made in recognition of Archer’s commitment to driving long-term value creation for all shareholders,” the companies said at the time in a joint press release.
Also in July, competitor Wisk Aero’s request for a preliminary injunction against Archer was denied by a federal judge in an ongoing legal battle alleging Archer stole trade secrets in developing its aircraft. Had the ruling gone against Archer, it would have effectively shut down the company’s operations.
Archer’s pending merger with the SPAC is still expected to produce approximately $1.1 billion of gross proceeds from a PIPE, along with approximately $500 million cash held in trust, assuming no redemptions by Atlas Crest’s existing public stockholders.
If the deal is approved, Archer will be listed on the NYSE uder ACHR. Read more.
