Astro Aerospace Ltd., which develops electric vertical takeoff and landing, or eVTOL, aerial vehicles and drones, today said that it has closed its acquisition of Horizon Aircraft Inc. The companies said the transaction will enable them to offer a complete product line across commercial and industrial applications, combining access to capital with industry experience.
Horizon Aircraft claimed that it has developed the world's first eVTOL that can fly most of its mission like a normal aircraft while offering industry-leading speed, range, and operational utility. The Lindsay, Ontario-based company said its Cavorite X5 eVTOL is designed to enter the market quickly and service a broad spectrum of early use cases. The eVTOL market could reach $1 trillion by 2040, according to Morgan Stanley.
Astro Aerospace has developed autonomous, short-haul, eVTOL vehicles. The Lewisville, Texas-based company claimed that it is one of the few eVTOL businesses providing both full electric and hybrid aircraft options. In addition, Astro sells single-passenger, piloted multiple-passenger, and cargo aircraft designs. The company said it will now have three eVTOL models under development—Alta, Elroy, and the Cavorite X5.
“This completed acquisition is a huge opportunity for both companies' eVTOL projects to progress exponentially,” stated Brandon Robinson, co-founder and CEO of Horizon Aircraft. “Astro's respected industry reputation and available funding, together with Horizon's engineering and design talent, will complement Astro's existing product lines, Alta and Elroy, and will accelerate the development of Horizon's revolutionary eVTOL, the Cavorite X5.”
Astro to continue development of Cavorite X5
Horizon Aircraft said the Cavorite X5, named after a “gravity-blocking substance” in H.G. Wells' The First Men in the Moon, is targeting the urban air mobility market. It could also serve long-range regional air mobility, currently an underserved portion of the market, said the company.
Horizon acquired private funding to build the Cavorite X5 eVTOL prototype, which will now be continued by Astro through a committed investment. The 1:2 prototype will be built at Horizon's production facility in Canada, and Astro expects it to be completed by the first quarter of 2022.
Horizon has successfully completed than 200 test flights of an existing sub-scale prototype. The primary objective for the sub-scale eVTOL prototype's test flights is to verify aerodynamics, control systems, and transitional flight, said the company. Astro also said it plans to build a full-scale, certified prototype of the Cavorite X5 by the end of 2024.
The Cavorite X5 is the world's first eVTOL to fly the majority of its mission as a normal aircraft, said Astro. The hybrid-electric aircraft will carry four passengers plus one pilot and be built for operational realities such as inclement weather, traffic avoidance and low-time pilots. The full-scale Cavorite X5 will be designed to travel up to 500 km (310.6 mi.) at a speed of 450 kph (279.6 mph), the company said.
The eVTOL aircraft will offer advantages over current conventional aircraft including increased safety, lower operating costs, a reduced noise footprint, and lower carbon emissions, stated Horizon. 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, it said.
“The completed acquisition will propel the development of the Cavorite X5 forward,” said Patricia Trompeter, a member of Astro's board of directors. “It will strengthen Astro's ability to pursue commercialization and allow the visions of both Astro and Horizon to align, creating a powerhouse in the eVTOL market.”
Terms and leadership
The acquisition was completed for common shares of Astro stock, the material terms of which are disclosed in the company's related 8-K filing. The companies said that Horizon Aircraft management will remain in key leadership roles.
Robinson has been appointed president of Astro Aerospace. He holds a mechanical engineering degree from the Royal Military College of Canada, is a CF-18 Fighter Pilot Top Gun graduate, has an MBA from Royal Roads University, and has led more than $400 million in complex engineering projects.
Bruce Bent, previously CEO of Astro Aerospace, will assume the role of executive chairman to assist in implementing the Astro business plan developed over the past two years.
In addition, Trompeter will take on the role of CEO. She has more than 16 years of experience in mergers and acquisitions and 15 years in financial management experience. After graduating from Marquette University's Business Administration program with a major in finance and economics, Trompeter spent a large portion of her career holding a variety of executive positions at GE Capital including chief financial officer, controller, operations leader, quality leader, and mergers & acquisitions.
During her career at GE Capital, Trompeter participated in more than $17 billion in acquisitions and transactions. After leaving GE Capital, she focused on non-profit ventures and family before co-founding an independent investment and advisory firm growing innovative technologies in emerging markets.
“Bruce has been an industry pioneer and driving force behind Astro's success, which has progressed the company's vision into tangible milestones,” said Trompeter. “I am excited to be working with Mr. Robinson, who possesses the ability to develop aerial solutions with the perfect balance of analytical and creative. Their combined expertise will help me guide Astro through this transformative chapter as the company merges product lines, implements Astro's strategic vision, and begins the Nasdaq uplist process.”
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