New Horizon Aircraft (NASDAQ: HOVR) is making significant progress in the development of its hybrid-electric Vertical Take-Off and Landing (eVTOL) aircraft, the Cavorite X7. This advancement places the company in a competitive stance within the eVTOL market, which is expected to exceed $30 billion in the next decade. The Cavorite X7's innovative design, featuring a patented HOVR wing system, allows for vertical takeoff before transitioning to a conventional airplane configuration, achieving speeds up to 250 miles per hour and a range over 500 miles.
The company's ongoing flight test program has yielded positive results, with hundreds of tests conducted and the anticipation of reaching full transition speed by year-end. Development of full-scale propulsion units, crucial for the HOVR wing technology, is also progressing well, with successful cooling system and power tests. New Horizon's use of hardware-in-the-loop (HITL) digital twin technology facilitates rapid testing and development, potentially speeding up the commercialization process.
Strengthening its team, New Horizon appointed Tom Brassington as Chief Technology Officer, adding valuable aerospace engineering expertise. Additionally, the company completed a $2.9 million public offering in August, issuing 2.8 million Class A ordinary shares with various warrants. This strategic move aims to leverage the expected shift in equity markets towards small-cap stocks, particularly those involved in sustainable technologies.
A global poll commissioned by New Horizon revealed increasing investor interest in small- and micro-cap companies focusing on sustainable technologies. With over three-quarters of investment managers surveyed anticipating higher institutional investments in these sectors, and 34% expecting allocations to rise by at least 25%, New Horizon is well-positioned to attract investment. The development of the Cavorite X7 could revolutionize regional air travel, emergency services, and military logistics, offering a faster, more efficient, and cost-effective alternative to traditional aviation methods.
