Shareholders Approve Up To $50M In New Funding

British eVTOL manufacturer Vertical Aerospace announced it secured approval with investors and shareholders that will significantly strengthen its financial position by as much as $180 million through both new funding and conversion of existing debt into equity shares.

Documents filed through the approval of the transaction that will advance Vertical’s ‘Flightpath 2030’ program to bring its piloted flight test program to fruition. Vertical’s full-size prototype eVTOL vehicle, VX4, is now in Phase 2 of flight testing, and the funding will ensure that the vehicle can be certified by Britain’s Civil Aviation Authority (CAA).

The company currently has about 1,500 pre-orders for the vehicle across four continents, and includes Japan Airlines, American Airlines, GOL, and Bristol.

Terms of the agreement include:

• Up to $50 million in new funding commitment by Mudrick Capital, with $25 million upfront and $25 in backup funding
• Conversion of $130 million of debt into equity at $2.75 per Ordinary Share
• Shareholder support for new governance arrangements and authorization for an increase in share capital

Stuart Simpson, Vertical CEO said, “Ending this momentous year with a finalised funding commitment and strong shareholder backing is a tremendous milestone. This moment sets us up perfectly for our biggest year yet – with new investment, piloted testing progress and major technological developments all on the cards.”

Jason Mudrick, Founder and Chief Investment Officer at Mudrick Capital Management said, “Vertical is revolutionizing how the world moves, and we are proud to play a pivotal role in positioning the company for success. We look forward to continuing to partner with Vertical’s exceptional team and contributing capital market and other expertise in helping to bring their groundbreaking product offering to reality.”

FMI:  vertical-aerospace.com/