HOVR New Horizon Aircraft Ltd

New Horizon Aircraft (NASDAQ: HOVR), doing business as Horizon Aircraft (“Horizon Aircraft” or the “Company”), the advanced aerospace engineering company and developer of eVTOL (electric Vertical Take-Off and Landing) aircraft, publishes new global research* that indicates fund managers that invest primarily in small-cap and micro-cap stocks believe there will be an increased level of exposure to small and micro-caps from both institutional and retail investors over the year ahead.

The global study with small and micro-cap fund managers in the US, Canada, Europe, the Middle East and Asia with collectively $82.4 billion assets under management, found that 76% of respondents anticipate the level of exposure to small and micro-caps from institutional investors to increase over the next six to 12 months. One in three (34%) fund managers believe allocations could increase by 25% or more.

The findings also reveal that 83% of fund manager respondents expect retail investors to increase their allocation of small and micro-caps over the next six to 12 months. Over half (52%) of respondents believe that the allocation could increase by more than 25%, and one in eight (12%) believe that exposure to small and micro-caps could rise by more than 50%.

One in three fund managers describe the current level of exposure from institutional investors to both small- and micro-caps as being underweight, with 21% of respondents describing the allocation to micro-caps as being “slightly underweight” and 11% describing it as being “extremely underweight”. Institutional investors’ current level of exposure to small-caps and micro-caps is described as being overweight by 4% and 23%, respectively. A similar picture is seen with retail investors, with fund managers describing this group’s allocation to small-caps and micro-caps as being underweight (32% and 27%, respectively) and as being overweight (17% and 13%, respectively).

Brandon Robinson, CEO of Horizon Aircraft, said: “Our research indicates that one third of fund managers believe that exposure to small and micro-caps by both institutional and retail investors is lower than it should be. However, with forecasted interest rate cuts and market conditions set to improve, fund managers are anticipating that investors will be looking to significantly increase their allocation to small and micro-cap stocks.

As the economy rebounds, small and micro-cap companies can have a higher growth potential than large-cap companies due to their smaller revenue bases and their agility to capitalize on opportunities. This has historically made them more attractive to investors who are driven by the potential for high returns and greater earnings acceleration in the next 12 months.”

Horizon Aircraft’s Cavorite X7 aircraft will have a gross weight of an estimated 5,500 lbs with a projected useful load of 1,500 lbs. With an anticipated maximum speed of 250 miles per hour and an average range of over 500 miles with fuel reserves, Horizon believes that this experimental aircraft, if eventually licensed for commercial use, would be well-positioned to excel in medical evacuation, critical supply delivery, disaster relief, and special military missions. The Company believes that the proposed aircraft would also be attractive for Regional Air Mobility – moving people and cargo 50 to 500 miles.

Unlike many in its category, the Cavorite X7 is being designed with a hybrid electric power system. The Company is designing the Cavorite X7 such that it could, after its vertical takeoff, re-charge its batteries enroute when it is flying in a configuration like a traditional aircraft. After a vertical landing and completion of a mission, the Company is designing the Cavorite X7 to recharge its battery array in under 30 minutes to be ready for its next mission.

Horizon believes that its innovative approach and technology will allow the Cavorite X7 to fly 98% of its mission in a very low-drag configuration like a traditional aircraft. The Company believes that flying most of the time as a normal aircraft is also safer and will make the aircraft easier to certify than other radical new eVTOL designs. The Cavorite X7 is designed to be powered by a hybrid electric system that will recharge the battery array in-flight and post-flight, while also providing significant system redundancy. The Company is continuing the testing of its 50%-scale aircraft that it believes will reduce technical risk moving forward as it continues to develop its full-scale aircraft.

Notes to Editors* Horizon Aircraft commissioned the market research company PureProfile to survey 100 small and micro-cap fund managers in the US, Canada, Europe, the Middle East and Asia with collectively $82.4 billion assets under management, to capture their views on the small and micro-cap market. The survey was conducted online in July 2024.

About Horizon Aircraft

Horizon Aircraft (Nasdaq: HOVR) is an advanced aerospace engineering company that is developing one of the world’s first hybrid eVTOL that is to be able to fly most of its mission exactly like a traditional aircraft while offering industry-leading speed, range, and operational utility. Horizon’s unique designs put the mission first and prioritize safety, performance, and utility. Horizon hopes to successfully complete testing and certification of its Cavorite X7 eVTOL quickly and then enter the market and service a broad spectrum of early use cases. Visit www.horizonaircraft.com for more information. Information on the Company’s website does not constitute a part of and is not incorporated by reference into this press release.

Forward-Looking Statements

The information in this press release contains certain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “aim,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result” and similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) changes in the markets in which Horizon competes, including with respect to its competitive landscape, technology evolution or regulatory changes; (ii) the risk that Horizon will need to raise additional capital to execute its business plans, which may not be available on acceptable terms or at all; (iii) the ability of the parties to recognize the benefits of the business combination agreement and the business combination; (iv) the lack of useful financial information for an accurate estimate of future capital expenditures and future revenue; (v) statements regarding Horizon’s industry and market size; (vi) financial condition and performance of Horizon, including the anticipated benefits, the implied enterprise value, the expected financial impacts of the business combination, the financial condition, liquidity, results of operations, the products, the expected future performance and market opportunities of Horizon; (vii) Horizon’s ability to develop, certify, and manufacture an aircraft that meets its performance expectations; (viii) successful completion of testing and certification of Horizon’s Cavorite X7 eVTOL; (ix) the targeted future production of Horizon’s Cavorite X7 aircraft; and (x) those factors discussed in our filings with the SEC. You should carefully consider the foregoing factors and the other risks and uncertainties that will be described in the “Risk Factors” section of our Annual Report on Form 10-K filed with the SEC on March 28, 2024 and other documents to be filed by New Horizon from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward- looking statements, and while Horizon may elect to update these forward-looking statements at some point in the future, they assume no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law. Horizon does not give any assurance that Horizon will achieve its expectations.

ContactsHorizon Aircraft Inquiries (PR):Phil AndersonPhone: +44 (0)7767 491 519Phil@perceptiona.com

Investor Contacts:Shannon Devine and Rory Rumore MZ GroupPhone: (203) 741-8841HorizonAircraft@mzgroup.us