Archer Aviation reversed from an early attempted breakout Thursday. The maker of electric air taxis on Wednesday won a bid to acquire the patent portfolio of Germany-based Lilium. Cathie Wood's Ark Invest sold a large number of Archer shares on Wednesday.
Archer Aviation on Wednesday announced that it won a bid to purchase Lilium GMbH's portfolio of around 300 advanced air mobility patent assets for 18 million euros ($20.98 million). The patents span innovations in high-voltage systems, battery management, advanced aircraft design, flight controls, electric engines, propellers and ducted fans.
Lilium spent more than $1.5 billion to develop patents for its electric vertical take off and landing (eVTOL) platform, according to the release, which Archer believes will bolster its own systems.
"Lilium's pioneering work advanced the frontier of eVTOL design and technology, and we're excited to bring their cutting-edge technologies into the fold at Archer as we advance our product road map," CEO Adam Goldstein said.
Archer said the acquisition strengthens its position as a leader in next-generation electric aviation. The air taxi maker added that its purchase comes at a time of recent consolidation in the industry. Archer noted that Volocopter was recently acquired by China-based Wanfeng Group. Wanfeng completed its roughly $11 million acquisition back in March.
Archer Aviation Stock
ACHR stock jumped almost 10% in initial trade Thursday, briefly retaking a 13.92 buy point in a five-month consolidation. Shares quickly pulled back to close with an 8.9% drop on the day, triggering a sell rule.
Shares also briefly topped the buy point Wednesday.
Despite Thursday's drop, Archer Aviation has rallied almost 22% so far this year.
Meanwhile, Cathie Wood and Ark Invest unloaded more than 300,000 shares of ACHR stock on Wednesday. The firm sold 302,280 shares from the flagship Ark Innovation ETF, worth about $3.94 million based on the 13.03 closing price.
Archer Aviation peaked at 14.62 Wednesday.
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