New Horizon Aircraft Ltd.

HOVR Reports New Partnerships As It Advances Toward Certification.
Affirm Buy Rating And Price Target Of USD $4.55.

Important Disclosures:

The analysts or a member of his/her household do not hold a long or short position, options, warrants, rights or futures of this security in their personal account(s).

As of the end of the month preceding the date of publication of this report, Oak Ridge Financial did not beneficially own 1% or more of any class of common equity securities of the subject company.

There is not any actual material conflict of interest that either the analyst or Oak Ridge Financial is aware of.

The analysts have not received any compensation for any investment banking business with this company in the past twelve months and does not expect to receive any in the next three months.

Oak Ridge Financial has been engaged for investment banking or advisory services with the subject company during the past twelve months and does anticipate receiving compensation for such services in the next three months.

Oak Ridge Financial has not served as a broker, either as agent or principal, buying back stock for the subject company’s account as part of the company’s authorized stock buy-back program in the last twelve months.

No director, officer or employee of Oak Ridge Financial serves as a director, officer or advisory board member to the subject company.

Oak Ridge Financial Rating System:  Oak Ridge Financial utilizes a two-tier rating system for potential total returns over the next 12 months.

Buy:  The stock is expected to have total return potential of at least 15%.  Catalysts exist to generate higher valuations and positions should be initiated at current levels.  Investors requiring time to build positions may consider current levels attractive.

Hold:  The stock is expected to have total return potential of less than 15%.  Fundamental events are not present to make it a Buy.  The stock may be an acceptable longer-term holding.

Valuation and Price Target Methodology:

We affirm our Buy rating on New Horizon Aircraft Ltd. (HOVR) and Price Target of C$4.55 (previously denominated in CAD).  Our valuation is based on a 6.50x EV/Sales metric on our FY30 estimate and is consistent with publicly traded companies relating to that of Advanced Air Mobility (AAM) and electric vertical takeoff and landing (eVTOL) technology.  Our FY30 estimate assumes approximately 20-30 aircraft to be sold during the period.  We believe this is a fair estimate given HOVR’s current LOI’s outstanding and overall market opportunity in the hybrid eVTOL space.  Given the Company’s equity ATM instrument, we have estimated future shares outstanding based on estimated cash needs at the Company’s current share price.

Oak Ridge Financial does not make a market in the subject security at the date of publication of this report.

Other Disclosures:

The information contained in this report is based on sources considered to be reliable, but not guaranteed to be accurate or complete.  Any opinions or estimates expressed herein reflect a judgment made as of this date and are subject to change without notice.  This report has been prepared solely for informative purposes and is not a solicitation or an offer to buy or sell any security.  The securities described may not be qualified for purchase in all jurisdictions. Because of individual requirements, advice regarding securities mentioned in this report should not be construed as suitable for all accounts. This report does not take into account the investment objectives, financial situation and needs of any particular client of Oak Ridge Financial.  Some securities mentioned herein relate to small speculative companies that may not be suitable for some accounts.  Oak Ridge Financial suggests that prior to acting on any of the recommendations herein, the recipient should consider whether such a recommendation is appropriate given their investment objectives and current financial circumstances.  Past performance does not guarantee future results.  Additional information is available upon request.