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 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 jumped 74% in after-hours activity.