New Horizon Aircraft Ltd. (NASDAQ: HOVR) announced it has entered into a definitive agreement with institutional investors for the sale of 9,960,160 Class A ordinary shares, generating gross proceeds of approximately $25 million before expenses.

The offering was led by the company's existing U.S. institutional shareholders, according to a press release. The transaction is expected to close on or about May 27, 2026, subject to customary closing conditions.

The Toronto-based aerospace company develops hybrid-electric vertical takeoff and landing aircraft. It plans to use the net proceeds to complete its Cavorite X7 prototype and advance the program toward testing, certification and commercial production.

"This financing reflects strong continued support from our existing institutional investors," said Brandon Robinson, CEO of New Horizon Aircraft. "We are now equipped to fully fund completion of our Cavorite X7 prototype and advance the program toward testing, certification, and commercial production."

Titan Partners, a division of American Capital Partners, served 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 relating to the offering will be filed with the SEC.

New Horizon Aircraft describes itself as developing hybrid-electric aircraft designed to fly most missions in traditional wing-borne flight. The company targets regional aircraft operators, emergency service providers and military customers upon successful completion of testing and certification.