Archer Aviation's (ACHR) stock stumbled, losing 11% in value on Monday. The drop came after the electric vertical takeoff and landing (eVTOL) aircraft maker, which is supported by United Airlines (UAL), announced that it is doubling the amount of available common stock. The company’s board membership and ownership requirements have also been changed. In a regulatory submission, Archer Aviation revealed that during a special shareholders' meeting on December 20, the investors elected to amend the company’s certificate of incorporation. This amendment increases the number of authorized shares of the company's Class A common stock that can be issued from 700,000,000 to 1,400,000,000. At the same meeting, the shareholders also approved the issuing of Class A Common Stock to automobile manufacturer Stellantis (STLA) as per an agreement reached earlier in August. The shareholders signed off on "restrictions on the company's voting, ownership, and control by individuals who do not qualify as 'a citizen of the United States,'" as defined by the prevailing federal law. Archer likewise acquiesced to certain restrictions on foreign ownership. Notwithstanding the market setback, Archer Aviation's shares have appreciated by over 60% this year alone.
Archer Aviation Stocks Decline by 11% as Company Doubles Authorized Shares
Archer Aviation's stock price dips as the eVTOL manufacturer doubles its available common stock and alters board membership and ownership requirements.
