Vertical Aerospace Ltd. (NYSE: EVTL) has secured up to $50 million in new funding after finalizing key agreements and receiving shareholder approval.
This development represents a significant milestone in the company’s journey to revolutionize sustainable air travel.
The company announced this week that it has successfully advanced its November agreement. It aims to strengthen its financial position by roughly $180 million and accelerate its ambitious Flightpath 2030 strategic initiative.
This comprehensive funding package comes at a crucial time for Vertical Aerospace. The company continues to make substantial progress in developing its groundbreaking electric vertical takeoff and landing (eVTOL) aircraft.
Funding Achievement Close Out Successful Year
Vertical CEO Stuart Simpson gave comment on the recent funding agreement. “Securing this funding commitment and strong shareholder support as we close out this remarkable year marks an incredible achievement,”
“We’re now perfectly positioned for our most ambitious year ahead. It features new investments, advances in piloted testing, and major breakthroughs in technology. This financial backing validates our vision and strengthens our ability to deliver on our promises to stakeholders.”
Jason Mudrick, who founded and leads Mudrick Capital Management as Chief Investment Officer, expressed his enthusiasm about the partnership. “Vertical is transforming transportation as we know it.”
“We’re honored to support their journey. We’re excited to contribute our capital market expertise to help bring their innovative technology to life. The potential impact of their technological advancements on urban mobility cannot be overstated.”
The latest developments include several key components that significantly enhance Vertical’s financial stability and governance structure.
December Progress on Agreement
Mudrick Capital has committed to provide $25 million in immediate funding, with an additional $25 million backup facility available (reduced by any third party contributions).
This pivotal agreement was settled on December 20, 2024, signalling strong investor confidence in Vertical’s business model and future prospects.
On December 23, 2024, the company put in place a major financial restructuring when Mudrick Capital converted $130 million of debt to equity at $2.75 per Ordinary Share.
They also agreed to set the conversion price for the remaining $130 million at $3.50 per Ordinary Share. This strategic restructuring substantially reduces Vertical’s debt burden and strengthens its balance sheet, providing enhanced financial flexibility for future operations.
Furthermore, Mudrick Capital extended the loan repayment deadline to December 2028, ensuring stability throughout Vertical’s critical certification process.
At a December 23 Extraordinary General Meeting, shareholders approved several important governance changes designed to enhance corporate oversight and transparency.
These include establishing an independent director majority on the Board, giving Mudrick Capital proportional director nomination rights when their ownership exceeds 10%. It doubles the authorized share capital to $210,000 (comprising 200 million ordinary shares and 10 million preferred shares).
Summary
These comprehensive financial and governance arrangements position Vertical Aerospace for accelerated growth in the rapidly evolving electric aviation sector.
The company’s strengthened balance sheet and enhanced corporate structure provide a solid foundation for advancing its technological development, certification efforts, and eventual commercial deployment of its innovative aircraft.
The successful completion of this funding round and governance restructuring demonstrates growing market confidence in Vertical’s vision for sustainable urban air mobility and its potential to transform the future of transportation.
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