The acquisition will be realized for five million common shares of Astro stock, the material terms of which are disclosed in the Company's related 8-K filing. The transaction was unanimously approved by the respective Boards of Directors.
The acquisition will broaden Astro's capabilities, and become a leading eVTOL platform while continuing to invest and innovate. The Company's acquisition of Horizon is expected to close in approximately ten days, subject to customary closing conditions. Upon closing the transaction, the CEO and Co-Founder of Horizon, Brandon Robinson, will be appointed as President of Astro and will sit on the Board of Directors. Jason O'Neill, Horizon's Chief Operating Officer, will be appointed Executive Vice President of Astro.
Astro's existing Alta and Elroy programs, combined with Horizon's highly accomplished team of engineering and design talent, is expected to better position the Company to pursue its goal of commercialization. This approach will emphasize existing technology and elegant design to become a leader in the eVTOL market. The new funding provided by Astro will enable Horizon to accelerate development of its Cavorite X5 eVTOL advanced prototype. The Company believes this new aerospace technology offers significant advantages over current conventional aircraft including lower operating costs, a reduced noise footprint, increased safety and lower carbon emissions.
"Astro and Horizon, two organizations focused on developing innovative air mobility solutions, is a very exciting and promising combination. Our aligned business model, enhanced by the complementary expertise and capabilities of the founder-led Horizon team, creates significant opportunities for accelerated growth while simultaneously delivering value to our shareholders," said Astro CEO Bruce Bent.
Horizon Co-Founder and CEO Brandon Robinson stated, "The Horizon family has found a great home in Astro and will continue operating with its distinct culture: excellence in product development and a deep passion for aviation. Horizon and Astro share in the mission of being at the forefront of eVTOL design and together we will be a more attractive and exciting company for our employees, our partners, and our investors."
Horizon co-founders Brandon and Brian Robinson have applied their excellence in Mechanical Engineering to change the way we approach travel. Brandon Robinson is a Mechanical Engineer, a CF-18 Fighter Pilot Top Gun graduate, and holds an MBA with more than $400 million in project management experience. Horizon's Chief Engineer, Brian Robinson (Brandon's father) is also a Mechanical Engineer, beginning his innovation journey long before Horizon's existence. Building aircraft from the age of 14, Brian's previous aerospace engineering company achieved much success as it developed numerous first-of-its-kind innovations. This eventually led to designing a revolutionary new eVTOL prototype, making Horizon a pioneer in the market.
The Horizon Cavorite X5 eVTOL
Horizon has successfully completed more than 200 test flights of its sub-scale prototype Cavorite X5, a five-seat hybrid-electric eVTOL. The primary objective for the sub-scale eVTOL prototype's test flights is to verify aerodynamics, control systems and transitional flight. For vertical flight, the wing surfaces retract to open its ducted fans before closing again after it achieves a minimum forward speed, maximizing the craft's aerodynamic efficiency while lowering operational costs.
The full-scale Cavorite X5, which is expected to travel up to an estimated 450 km/h with a 500-kilometre range, is designed for reduced hydrocarbon emissions, operation in poor weather, and ease of flying for low-time pilots. The aircraft targets Urban Air Mobility but also long-range Regional Air Mobility, currently an underserved portion of the market. The patented fan-in-wing technology allows the Cavorite X5 to be the world's first eVTOL that can fly the majority of its mission exactly like a normal aircraft.
Strategic Benefits of the Transaction:
- Horizon CEO and management to remain in key leadership roles
- Greater access to capital and industry experience to accelerate innovation
- Provides path to production and commercialization
