Air taxi developer Astro Aerospace (ASDN) announced Thursday that it would acquire Horizon Aircraft to expand its offerings with Horizon’s Cavorite X5.
Astro will acquire Horizon for 5 million shares of Astro stock. The deal is expected to close in 10 days, pending meeting closing conditions.
Brandon Robinson, the CEO and co-founder of Horizon, will be president of Astro and sit on the board of directors. Jason O’Neill, Horizon’s COO, will be become executive VP at Astro.
The merger will help Horizon continue the development of its Cavorite X5, a five-seat hybrid-electric air taxi. Horizon said that the air taxi has “lower operating costs, a reduced noise footprint, increased safety and lower carbon emissions,” than competitors.
Horizon has completed more than 200 test flights of a subscale prototype of the Cavorite X5.
Astro makes short-haul electric vertical takeoff and landing vehicles. It’s Alta offering uses a foldable design to be used in passenger, cargo, agricultural, medevac, rescue, military and other areas.
Air Taxi Stocks
Astro Aerospace, which trades over the counter, jumped 11% to 3.16 on the stock market today. The Horizon deal comes after air taxi companies have seen a flurry of investment over the last year.
Air taxi startup Archer secured an investment from United Airlines (UAL) after announcing plans to go public via a blank-check merger with Atlas Crest Investment (ACIC). Archer will trade under the ticker ACHR.
Intel (INTC) is backing air taxi company Volocopter.
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