New Horizon Aircraft Ltd. (NASDAQ: HOVR) announced it has entered into a definitive agreement with institutional investors for the sale of 9,254,889 Class A ordinary shares, generating approximately $20 million in gross proceeds before expenses.

The aerospace company, which develops hybrid-electric vertical takeoff and landing aircraft, expects the offering to close on or about May 8, 2026, subject to customary closing conditions. The company plans to use net proceeds to fund development of its Cavorite X7 aircraft program, working capital and general corporate purposes.

"This financing reflects strong recognition of the strategic importance of Horizon Aircraft's cutting-edge aerospace development," said Brandon Robinson, CEO of Horizon Aircraft. "We are now equipped to enhance our ability to develop world-class innovative technologies, accelerate our commercialization timeline, and attract and retain elite talent."

Titan Partners, a division of American Capital Partners, is serving as the sole placement agent for the offering.

The shares are being offered under a shelf registration statement on Form S-3 filed with the Securities and Exchange Commission on February 14, 2025, and declared effective on March 25, 2025. A prospectus supplement and accompanying prospectus will be filed with the SEC and available on the commission's website.

New Horizon Aircraft describes itself as developing hybrid-electric VTOL aircraft designed for wing-borne flight, targeting regional aircraft operators, emergency service providers and military customers upon completion of testing and certification.