eVTOL developer Vertical Aerospace has announced that it has secured anther USD100m in additional funding. The bulk of which will come from $40 million from Mudrick Capital Management, L.P. (“Mudrick Capital”) Vauled at USD40 million it is a combination of a recently closed $5 million draw plus a $35 million accelerated draw planned each under the Company’s existing $50 million convertible note facility. Another USD35m from investment by a group of new and exsisting investors a mix of shares and warrants priced at USD1.05
The final USD25m is found from the preferred equity facility with Yorkville Advisors. The Yorkville tranche is expected to settle today with the investor group and Mudrick Capital tranches closing tomorrow and Wednesday respectively.
Commenting on the announcement Stuart Simpson, CEO of Vertical Aerospace, said: “Following the momentum generated by our progress over the last six months, including our piloted transition demonstrations at Farnborough, we are focused on converting operational progress and partner engagement into continued advancement of our certification and commercialisation strategy. The support, reflected in these financings via new investors alongside further commitments from existing investors, demonstrates strong confidence in Vertical’s market position and progress, providing near-term flexibility to execute the next phase of our plan.”
Simpson’s bullish position has not sat particularly well with the markets with fears of dilution driving the company’s share price down by 35% to from its Friday close to USD0.88 in early trading.
Image: RHI
