04:55 PM EST, 12/20/2024 (MT Newswires) -- New Horizon Aircraft ( HOVR ) said late Friday it secured an $8.4 million investment from an unnamed investor to advance the development of its hybrid electric Vertical Take-Off and Landing aircraft, Cavorite X7.

As part of the investment, the investor will receive $2.1 million worth of Horizon class A ordinary shares, totaling 4,166,667 shares priced at CA$0.50 ($0.35) per share.

The company said that the investor will exchange $6.3 million for 4,500 preferred shares, which are convertible into common shares at CA$0.63 per share over a five-year period.

The preferred shares have a priority liquidation preference over the common shares. New Horizon Aircraft ( HOVR ) has committed to registering the common shares with the US Securities and Exchange Commission within 90 days of filing, according to the company.

Shares of New Horizon Aircraft ( HOVR ) jumped 74% in after-hours activity.