HORIZON AIRCRAFT (HOVR) Institutional Investor Package August 1, 2025 — Confidential Review Draft

HORIZON AIRCRAFT (HOVR) Institutional Investor Package August 1, 2025 — Confidential Review Draft

I. Executive Summary

Company: Horizon Aircraft Ltd Ticker: HOVR (Nasdaq) Sector: Advanced Air Mobility / Hybrid eVTOL Founded: 2013 (pivoted to hybrid eVTOL in 2018) Public Listing: January 12, 2024 (via SPAC merger with Pono Capital Three) Flagship Aircraft: Cavorite X7 – hybrid-electric VTOL with patented HOVR Wing Market Cap: ~$60 million (as of August 2025)

Investment Thesis: Horizon offers a patent-protected, certifiable hybrid eVTOL platform with early commercial validation, insider alignment, and dual revenue potential from aircraft sales and IP licensing. Long-term valuation potential modeled at $10 billion+ by 2030.

II. Aircraft Platform – Cavorite X7

Configuration: 7-passenger hybrid-electric VTOL Propulsion: Combustion engine powers 14 electric lift fans Range: ~800 km (~500 miles) Cruise Speed: Up to 250 mph

Key Differentiators:

• Patented HOVR Wing with closable fan-in-wing system
• 98% fixed-wing operation during cruise flight
• No reliance on grid charging infrastructure

Development Milestones:

• Hundreds of test flights completed
• Successful forward flight transition (May 2025)
• Full-scale prototype testing scheduled for 2026
• Certification underway with TCCA, FAA, and EASA

III. Certification Pathway

Lead Agency: Transport Canada Civil Aviation (TCCA) Bilateral Validations: FAA (U.S.), EASA (Europe) Certification Partner: Cert Centre Canada (3C)

Projected Timeline:

• 2025: Transition and propulsion evaluations
• 2026: Full-scale prototype flight testing
• 2027: TCCA Type Certification
• 2028: FAA and EASA validations

Strategic Regulatory Advantage:

• Canadian-led pathway accelerates FAA recognition
• Harmonized with global partners (USA, UK, Australia, New Zealand)

IV. Commercial Traction & Strategic Collaborations

Letters of Intent (LOIs):

Partner / Region / Aircraft Ordered / Status

• JetSetGo / India / 50 (+50 option) $250M+ LOI signed
• Discovery Air Chile/ Chile/ 5/ Lease intent signed (2028)

Strategic Collaborations:

• AFWERX / U.S. Air Force – Selected for HSVTOL Challenge Phase 1
• Canso Investment Counsel – C$6.7M convertible note (Dec 2023)
• MT-Propeller – Powertrain integration (June 2025)
• Andrea Mocellin – Cabin and industrial design (June 2025)
• ZeroAvia - Hydrogen-electric propulsion (July 2025)
• Cert Centre Canada – Certification support
• Pratt & Whitney Canada (anticipated) – Powerplant supply

V. Team & Strategic Talent

Executive Leadership:

• Brandon Robinson – CEO, former RCAF fighter pilot
• Jason O’Neill – COO, aerospace operations executive
• Brian Merker – CFO, experienced in public capital markets
• Stewart Lee – Head of Strategy & People

Industry-Linked Advisors:

• Justin Peng – Former VP of Strategy at Lilium
• John McKenna – Former CEO, Air Transport Association of Canada

Insider / Role / Date (Filing)Shares - Awards Granted / Performance Condition / Expiration / SEC Filing Link

Eric Brandon Robinson / CEO & Director / Aug 27, 2025 / 400,000 PSUs / Vest upon reaching $100M market cap / Dec 15, 2028 / Form 4

Brian Frederick Merker / CFO / Aug 27, 2025 / 257,143 PSUs / Vest upon reaching $100M market cap / Dec 15, 2028 / Form 4

Jason Michael O’Neill / COO / Aug 27, 2025 / 217,143 PSUs / Vest upon reaching $100M market cap / Dec 15, 2028 / Form 4

Stewart Murray Lee / Head of Strategy & People / Aug 27, 2025 / 57,143 PSUs / Vest upon reaching $100M market cap / Dec 15, 2028 / Form 4

Narrative Summary

In late August 2025, Horizon Aircraft filed four Form 4s awarding performance-based share units (PSUs) to its core leadership team. Each award vests only if the company achieves a $100 million market capitalization, directly aligning insider incentives with shareholder value creation.

• Strategic Goal: These awards establish $100M as a key milestone and rallying point for management.
• Long-Term Horizon: With expiration in December 2028, the structure emphasizes sustained growth over short-term movements.
• Unified Insider Incentives: By extending performance equity across CEO, CFO, COO, and Head of Strategy & People, Horizon ensures the entire leadership bench is focused on scaling market value.
• Clear Motivation: Unlike time-based vesting, these PSUs only pay out if Horizon Aircraft delivers meaningful market-cap expansion—insiders are betting their upside on shareholder success.

VII. Patent & Licensing Strategy

31 Patents total / 16 listed below:

1. US20190055010 - Aircraft landing gear and method
2. US20160221670 - Aircraft landing gear and method
3. WO2015035493 - Aircraft landing gear and method
4. CA2924133 - Aircraft landing gear and method
5. WO2016141447 - Aircraft landing gear and method
6. US20180050791 - Amphibious aircraft, landing gear, and method
7. US20240262493 - Aircraft and flow guide system having a flow guide structure
8. WO2024159328 - Aircraft and flow guide system having a flow guide structure
9. US11001377 - Aircraft airfoil and aircraft having the same
10. WO2021232141 - Aircraft airfoil and aircraft having the same
11. US11548621 - Aircraft airfoil having an internal thrust unit, and aircraft having the same
12. CA3014242 - Aircraft landing gear and method
13. USD997836S1 - Aircraft (design patent)
14. US10730612B2 - Aircraft landing gear and method
15. US12129019B2 - Aircraft and flow guide system having a flow guide structure
16. USD997836S1 (Aircraft Design)

Strategic Implications:

• Safeguards unique VTOL–cruise transition system
• Supports certification pathway and commercial licensing potential

Royalty Licensing Model:

Year / Licensed Units / Avg. Price / Licensed Revenue / 3% Royalty

• 2028 / 100 / $10M / $1.0B / $30M
• 2029 / 250 / $10M / $2.5B / $75M
• 2030 / 500 / $10M / $5.0B / $150M
• 2031 / 700 / $10M / $7.0B / $210M
• 2032+ / 800+ / $10M / $8.0B+ / $240M+

VIII. Capital Structure & Dilution Outlook

Current Capitalization:

• Basic Shares Outstanding: ~39.2M
• Public Float: ~12M

Share Distribution Breakdown

• Retail: 21.5%
• Strategic Corporate Entities: 53%
• Insiders and Management: 16.5%
• Institutions: 4.8%

$16.5M ATM Strategy Underway

• Total projected dilution: 28% CAGR

Medium-Term Analyst Estimate (~5 Years): Total shares could reach up to ~134M due to:

• Certification-stage funding
• Warrant/option exercises
• Strategic equity capital

Peer Comparison Snapshot (as of July 25, 2025)

Company / Share Price / Market Cap / Shares Outstanding / Free Float

Joby (JOBY) / $18.31 / $14.8B / 841.5M / 507.4M

Archer (ACHR) / $11.22 / $6.97B / 633.8M / 528.4M

Horizon (HOVR) / $1.59 / $62.3M / 39.2M / 12.00M

Modeled Dilution: Horizon to 2030 (29% CAGR Share Growth)

Year / Projected Shares Outstanding / Est. Annual Dilution

2025 / 39.2M–

2026 / 50.17M / +28%

2027 / 64.22M / +28%

2028 / 82.2M / +28%

2029 / 105.22M / +28%

2030 / 134.69M / +28%

2030 Implied Share Prices at Peer Valuations (134.69M FD)

Peer Benchmark / Target Market Cap / 2030 Share Price

Joby Equivalent / $14.8B / $110.68

Archer Equivalent / $6.97B / $52.13

• That’s a potential +3,179% to +6,863% return from today’s $1.59 price — even with full dilution modeled.

Dilution Offset Strategy: Royalty revenue from 2028+ could fund share buybacks, dividends, R&D, and offset projected dilution

IX. Institutional Valuation Model

Scenario Comparison – Fully Diluted Share Base

Milestone Phase / Timing / Price Target (134M FD)

Insider Alignment & Setup / 2025 / $4.50–$6.60

Full-Scale Prototype Flight / 2026 / $6.60–$20.00

TCCA Certification Progress / 2027 / $20.00–$40.00

FAA/EASA + Licensing Model / 2028–2030 / $75.00–$150.00

2030 Bull Case Valuation:

• Minimum Valuation: $10B-$20B
• FD Shares: 134M → $75-$150/share
• FD Shares: 250M → $40-$80/share
• IRR-Adjusted (2025): ~$4.50–$6.60 per share (discounted)

X. Risk Matrix

Risk Category / Level / Mitigation Approach

• Dilution / Medium / Linked to value creation; offset via royalties
• Certification Delays / Medium / Multi-jurisdictional pathway hedges timing risks
• Retail/Short Volatility / High / Insider buying, SSR, institutional interest stabilize trend
• Capital Intensity / High / Tiered ATM + LOIs reduce dependency on high-cost capital

XI. Key Catalysts Ahead

Event Timing

• Propulsion & Cooling UpdatesQ3 2025
• Full-Scale Prototype Testing 2026
• New LOIs / Commercial Agreements (Rolling)
• Capital Raise Filing (S-3 Use)Q3–Q4 2025
• TCCA Certification Application2026–2027
• FAA/EASA Validation Begins2028 onward

XII. Final Institutional Summary

• Certified hybrid-electric VTOL platform with robust IP
• Demonstrated commercial interest (LOIs in India and Chile)
• Insider alignment with no selling post-SPAC
• Strategic partnerships including AFWERX, Canso, CertCentre
• Capital plan minimizes dilution risk via staggered ATM model
• Royalty licensing optionality unlocks secondary revenue streams
• Long-term valuation potential modeled at $10B+ / up to $150/share FD

Appendix – One-Page Summary

Ticker: HOVR (Nasdaq)

Sector: Advanced Air Mobility

Flagship Aircraft: Cavorite X7 – 7-passenger hybrid VTOL

Market Cap: ~$60M (August 2025)

Valuation Target: $10-20B (2030 bull case)

Patent Portfolio: 31 patents (aerospace & fan-in-wing architecture)

Insider Alignment: Coordinated buys, no selling

Strategic Partners: AFWERX, MT-Propeller, 3C, Canso

LOIs Signed: JetSetGo (India), Discovery Air Chile

Max Dilution Forecast: 134M shares by 2030

Royalty Model: Estimated $240M+ in annual royalty income post-2032

Next Milestones: Prototype testing (2026), TCCA certification (2027)