Vertical Aerospace, a global aerospace and technology company that is pioneering electric aviation, announced the signing of an agreement in principle as part of a financing package totaling up to $850 million.
The new comprehensive financing package provides Vertical with access to a capitalized runway to build upon the Company’s significant operational progress and support achievement of its strategic milestones over the next 12 months and beyond. These include completing piloted transition flight, public flight demonstrations of the current prototype, progressing its hybrid-electric demonstrator, expanding the Vertical Energy Center, advancing construction of its aircraft manufacturing facility, and beginning production of the first full-scale Valo certification aircraft.
The Company is now positioned to have approximately $160 million of working capital in the near term, combining the $50 million of equity capital raised today and $30 million to be drawn under the facilities immediately on their execution with existing cash on hand and anticipated tax relief and government grants.
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A Path to Certification-Driven Value Creation
This comprehensive financing package enables Vertical’s delivery of the technical and operational milestones on its strategic road map. Vertical also maintains freedom and flexibility to access other capital sources outside of the package in the future. By shoring up its balance sheet, the Company believes the market can now focus on its core product potential and business fundamentals.
“Today marks a new dawn for Vertical Aerospace. We have assembled a comprehensive, flexible financing package designed to execute our strategic plan, and materially strengthened our ability to build and certify Valo. We are grateful to Mudrick Capital and Yorkville for their support of our technology, team and mission.” – Stuart Simpson, Chief Executive Officer, Vertical Aerospace
“We have backed Vertical Aerospace since 2021 because we believe they are building the most technically advanced aircraft in the industry. This financing package is designed to give Vertical ample runway and the financial foundation it needs to achieve certification, enter commercial service, and realize the substantial value we see in this business. We are proud to be deepening our commitment at this pivotal stage.” – Jason Mudrick, Chief Investment Officer, Mudrick Capital Management
“Over the past year, we’ve had extensive conversations with existing and prospective shareholders about what matters most as we move through our next phase: disciplined, milestone-aligned access to capital. This financing package provides immediate working capital and provides management with flexible tools to access additional capital in a manner that promotes capital efficiency, as we progress through our certification milestones. We are more excited than ever about Vertical’s prospects.” – Dómhnal Slattery, Chairman of the Board, Vertical Aerospace.
SOURCE: Businesswire
