Stock Alert: New Horizon Aircraft – Act Before Takeoff!

Dear Valued Readers,

Imagine a world where urban congestion is no longer a roadblock and regional travel isn't bound by antiquated systems. This isn’t just a possibility—it’s the future of transportation, driven by the explosive potential of the advanced air mobility (AAM) market.

With a projected valuation of $1.5 trillion by 2040, according to Morgan Stanley, the AAM sector is poised to revolutionize the way we move people and goods across cities and regions. For investors, this represents one of the most significant opportunities in modern transportation.

Current travel methods—roads, railways, and even short-haul flights—are increasingly inefficient. NASA reports that 73% of Americans prefer road travel, despite hours of gridlock. Europe presents a prime example, with over 240 viable intercity routes connecting cities of more than 300,000 people. While the convention is pretty solidly baked into the market psyche, there is ample room for transformation. In fact, the logistical benefits of this opportunity are truly revolutionary in terms of time and energy costs saved.

eVTOL (electric vertical takeoff and landing) aircraft could significantly reduce travel times across these routes, meeting untapped demand.

Moreover, thinking beyond passenger travel: the ripple effect of eVTOL technology extends to logistics, emergency services, and military applications. Consider rapid-response teams reaching disaster zones in record time, or critical supplies being airlifted to remote communities. The opportunities are vast, and with global governments pouring billions into transport infrastructure and sustainability initiatives, the regulatory and financial support is already falling into place.

The bottom line? This market is on the verge of a seismic shift. Investors who understand the trajectory of AAM stand to capitalize on an entirely new era of transportation. The growth trajectory is clear, the demand is undeniable, and the regulatory environment is primed for support. The only question left is: are you ready to be part of this revolution?

Peering into the AAM Market

The advanced air mobility (AAM) market is experiencing a surge in investment from both private and public sectors. Major aerospace companies, venture capitalists, and technology giants are pouring resources into AAM development, while governments are actively supporting innovation with grants, subsidies, and policy frameworks. This influx of funding is speeding up research and development, allowing both startups and established players to bring advanced AAM solutions to market faster.

This rush to enter the market is justified considering the staggering growth statistics the market offers from 2024 to 2030, and further beyond to 2035, according to experts. A recent research piece published by MarketsAndMarkets.com puts forward the numbers. An estimated $4.6 billion market size in 2024, likely to grow at a CAGR of 12.1% annually from 2030 to 2035. The most impressive part is this only focuses on the urban applications of AAM. Accounting for all other use cases, this market grows exponentially higher.

Technological advancements are rapidly transforming the AAM landscape. Innovations in electric propulsion, autonomous flight, and advanced materials are making eVTOL aircraft more efficient and viable.

Breakthroughs in battery technology are extending flight range and improving energy efficiency, while autonomous navigation and artificial intelligence are enhancing safety and operational effectiveness. These innovations are driving the adoption of AAM for various uses, including air taxis, cargo delivery, and emergency response.

Equally important is the progress in regulatory frameworks. Authorities like the Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA) are establishing guidelines for certification, air traffic management, and operational safety. These regulatory advancements are critical to the safe commercialization of AAM services and building public trust in this emerging technology.

Introducing Our Star Player

Symbol: (NASDAQ: HOVR)
Company: New Horizon Aircraft Ltd
Quote: https://finance.yahoo.com/quote/HOVR/
Latest News: https://finance.yahoo.com/quote/HOVR/news?p=HOVR
Company Website: https://www.horizonaircraft.com/

New Horizon Aircraft Ltd. is an advanced aerospace Original Equipment Manufacturer (OEM) focused on designing hybrid electric Vertical Takeoff and Landing (eVTOL) aircraft for the Regional Air Mobility (RAM) market.

Its flagship product, the Cavorite X7, is a 7-seat hybrid electric aircraft designed to offer faster, more efficient regional transportation over distances of 50 to 500 miles. The Cavorite X7 features innovative technology that allows vertical takeoff like a helicopter, but transitions to a conventional aircraft configuration during flight, enabling it to achieve speeds up to 250 miles per hour and cover distances over 500 miles.

The aircraft utilizes New Horizon's patented fan-in-wing technology, which improves performance and efficiency compared to traditional helicopters. The Cavorite X7's hybrid electric powertrain is designed to reduce battery size, improve safety, and enable operations in remote areas without relying on charging stations.

New Horizon has built and tested a 50%-scale prototype of the Cavorite X7, receiving regulatory approval from Transport Canada Civil Aviation. The company aims for type certification by 2027 and holds 22 patents protecting key innovations. New Horizon plans to sell its aircraft for both civilian and military applications, offering a faster, more cost-effective alternative to helicopters.

To summarize, the Cavorite, New Horizon’s star product holds tremendous competitive edge due to the following factors:

• Proprietary Ducted Fan-in-Wing Technology: HOVRWing system offers higher efficiency, lower noise, and adaptability for various takeoff modes.

• Agile Team with Significant Aerospace Experience: A team with over 200 years of aerospace experience supports innovative design and operational expertise.

• Operational Experience: Leadership's hands-on aviation experience enhances real-world application and cost-effective aircraft design.

• Regional Air Mobility Market Focus: The aircraft is optimized for regional transportation, medical evacuations, remote resupply, disaster relief, and military missions.

• Broad Licensing Potential: Unique technologies like the HOVR Wing can be licensed for additional revenue streams.

• Hybrid Electric Power System: Hybrid design allows for off-grid operations, quick recharging, and reduced emissions.

Regulatory Pathway: Paving the Way for Certification Success

Navigating the complex regulatory landscape of civil aviation is a critical step for any aerospace manufacturer, and New Horizon Aircraft has a well-structured plan to achieve the necessary certifications.

In Canada, the company is working with Transport Canada Civil Aviation (TCCA), while in the United States, it is engaging with the Federal Aviation Administration (FAA). Both regulatory bodies are responsible for overseeing the certification of new aircraft designs for commercial use, ensuring safety and compliance with rigorous standards.

New Horizon Aircraft intends to obtain a Type Certificate for the Cavorite X7 under TCCA’s Canadian Air Regulations (CAR) §523, which applies to Normal Category, Level 2 aircraft designed for 2 to 6 passengers. Given the innovative design of the Cavorite X7, however, it is expected that TCCA may also invoke elements of CAR §527, typically used for helicopter certification, along with additional Special Conditions. This reflects the aircraft's unique technological advancements, particularly its hybrid electric propulsion system and vertical takeoff capabilities.

The company has partnered with the Flight Test Centre of Excellence (3C), an expert in aircraft certification, to serve as its Applicant’s Representative. This collaboration brings a wealth of experience in managing complex certification programs and is intended to streamline the approval process.

In addition, initial discussions with the FAA have already taken place, with plans for a parallel certification program in the U.S., which could expedite approval for the Cavorite X7 in both countries.

Moreover, obtaining Type Certification is only the first step. New Horizon Aircraft will also pursue a Production Certificate, which will allow the company to begin large-scale manufacturing of the Cavorite X7 to meet anticipated demand. This dual focus on regulatory approval and production readiness positions the company well to capitalize on the advanced air mobility market. Despite the lengthy process, the company’s strategic partnerships and regulatory approach demonstrate a clear path toward commercialization, that is very compelling to be a part of.

Capital Allocation for Strategic Growth and Innovation

New Horizon Aircraft has outlined a clear and strategic capital allocation plan to drive the development of the Cavorite X7. Over the next two years, the company anticipates utilizing $20 million to build a fully functional, 100%-scale prototype of the Cavorite X7. This investment will support flight testing, advance pre-sales efforts, and lay the foundation for the aircraft's future in the commercial market.

A significant portion of the raised capital—$10 million—will be allocated to Research & Development (R&D), underscoring the company's commitment to innovation and ensuring that the Cavorite X7 meets the highest safety and performance standards. Capital Expenditures (CapEx), amounting to $5 million, will cover essential infrastructure and equipment costs necessary for the development of the aircraft. Meanwhile, $4 million will be directed toward General & Administrative (G&A) expenses, and $1 million will be allocated to Sales & Marketing (S&M) efforts, ensuring the project garners visibility in the market.

Leveraging government support for aerospace innovation further strengthens the company's position. This is promising for the prospects of the company, since both the Canadian and U.S. governments have prioritized aerospace investments, creating opportunities for New Horizon Aircraft to access non-dilutive capital.

One notable example is Canada’s Initiative for Sustainable Aviation Technology (INSAT), which involves a $350 million investment to accelerate the green transformation of the aerospace sector. This environment of governmental backing could significantly enhance the company’s financial flexibility and accelerate the timeline for the Cavorite X7's market debut.

Assessing Stock Potential

The HOVR price chart shows an interesting occurrence, with the stock trading close to its 52-week low.

This positioning alleviates considerable downward pressure and sets the stage for a potentially smooth ascent, especially as further R&D efforts continue to materialize on the tangible front. Hence, it's not surprising that the stock has seen an impressive 7.24% uptick in the past month.

Furthermore, despite its nominal price of $0.79, HOVR boasts a remarkably low short float of 2.8%. This coupled with its insider ownership of 48%, is a promising indicator, particularly in the realm of a developing concept that is yet to take stage.

Looking ahead, the strong liquidity position of the company, owing to the capital it has raised, allows it to forge its path forward in the development process.

Final Thoughts

The future of New Horizon Aircraft is undeniably bright, supported by key strengths that set it apart from competitors. Its robust marketing strategy, designed to build industry and consumer awareness, positions the company for strong public presence and investor confidence.

With an innovative value proposition centered on the Cavorite X7's versatile capabilities, striking design, and unmatched safety standards, New Horizon Aircraft stands out in the VTOL landscape. While competition exists, the company's focus on hybrid electric systems offers clear advantages in speed, range, and utility, making it a smart investment choice for those seeking long-term growth in advanced air mobility.

Warm regards,

Stocks Telegraph Team

Disclaimer: This report is for information purposes only and is neither a solicitation or recommendation to buy nor an offer to sell securities. Million News Media Inc. is not-a-registered-investment-advisor. Million News Media Inc. is not a broker-dealer. Information, opinions, and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Million News Media Inc., its wholly owned subsidiaries, websites and social media platforms accepts no liability for any losses arising from an investor’s reliance on the use of this material. Million News Media Inc. is compensated 4500 for coverage of New Horizon Aircraft Ltd (NASDAQ: HOVR) by AWARENESS CONSULTING NETWORK LLC. Million News Media Inc. and its affiliates or officers may purchase, hold, and sell shares of common stock of this stock, in the open market at any time without notice. Million News Media Inc. will not update its purchases and sales of this stock in any future postings on Million News Media Websites and social media channels including its own and other forums they may post. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words “may”, “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend,” “project,” and similar expressions and variations thereof are intended to identify forward-looking statements. Such forward-looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Million News Media Inc. does not set price targets on securities. Never invest in a stock discussed on this website or in this email alert unless you can afford to lose your entire investment.