Archer AviationSPAC took Archer Aviation public, reducing its valuation by $1 billion.Archer's $1.7 billion valuation makes it more attractive to enter the market, according to Atlas Crest, a sponsor of SPAC.Oscar Munoz, the former CEO of United Airlines is joining Archer's board.Check out more stories from Insider's business page.Archer Aviation, an electric taxi startup, will soon be made public. The company's valuation has been reduced by $1 billion as part of a revised agreement between Atlas Crest, its blank check sponsor, and the company.According to a joint statement, Archer's pro forma enterprise valuation now stands at $1.7billion, down from $2.7billion. According to the companies, the new entry point is more appealing and recognizes Archer’s commitment to creating long-term value for shareholders.Archer and Atlas Crest announced their merger agreement in February with a pro forma equity valuation of $3.8 billion. Under the amended deal, the combined company will still receive $1.1 billion in proceeds.Archer, a San Francisco Bay Area company, makes vertical take-off-and-landing aircraft. United Airlines placed a $1 billion order for Archer in February. The company also has the option to purchase an additional $500 million worth of aircraft. According to Thursday's statement, Oscar Munoz (the former CEO of United Airlines) will join Archer’s board.Adam Goldstein, Archer’s co-founder, and co-CEO said that Archer's exceptional commercial partnerships and talent have set them apart from other companies in the eVTOL sector. He was referring to the electric vertical lift and landing concept. We believe that these qualities, along with our recent, meaningful business progress, and an adjusted valuation, make Archer a compelling investment thesis, both on an absolute basis and relative basis.This revision is coming at a time when blank-check companies (or SPACs) are under increased regulatory scrutiny. Private companies can bypass the traditional IPO process, which is slower and more expensive, by creating special purpose acquisition companies. SPACs were warned by the Securities and Exchange Commission in January about making projections that are too optimistic. It also stated it would review SPAC disclosures and filings, as well as those of private deal targets.Archer will be listed at the New York Stock Exchange under the ticker "ACHR."
