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Vertical Aerospace Ltd (NYSE:EVTL) disclosed securing committed funding worth $50 million from its founder, majority owner, and CEO, Stephen Fitzpatrick.
As per the binding deal between the company and Fitzpatrick, the CEO commits for an initial tranche of $25 million.
The tranche, which includes a mixture of ordinary shares at $10 per share and warrants with a $5 exercise price, will close by March 2024.
The second tranche of $25 million will close by July 31, 2024, and for ordinary shares at a price per share to be determined.
The transaction closure is subject to entry into long-form agreements and other customary closing conditions.
The investment offers the company a platform for further funding rounds and extends its projected cash runway into second quarter of 2025, thereby supporting the continued development of the certification aircraft design following prototype testing this year.
The funding came on the back of several major milestones achieved by the company in 2023, including pre-orders for 1500 VX4 aircraft worth over $5bn from customers globally, receiving Design Organisation Approval (DOA) from the U.K. Civil Aviation Authority (CAA) and completing initial Technical Familiarisations with five global aviation regulators and proceeding to a key design review for the VX4.
Mike Flewitt, Chairman of Vertical, said, “I am delighted that Stephen has committed to further funding Vertical. His vision and funding to date have enabled Vertical to be a frontrunner in the Advanced Air Mobility industry and I look forward to both our demonstrations and the completion of additional funding rounds to deliver on the promise the VX4 has to offer our customers and their passengers. We are on track to deliver a transformative UK developed electric aircraft to our customers across the globe.”
In 2023, Vertical’s unaudited results indicate that its net cash used in operating activities stood at about $95 million.
Price Action: EVTL shares are up 0.99% at $0.5898 premarket on the last check Monday.
Photo via Wikimedia Commons
Posted In: EVTL
