Synopsis
Vertical Aerospace said on Monday it has agreed in principle to a financing package of up to $850 million, sending its US-listed shares up over 4% in morning trading. The company said it raised $50 million of equity capital on Monday and expects a further $30 million shortly, positioning it to have about $160 million of working capital in the near term to fund operations through 2026.The company said it raised $50 million of equity capital on Monday and expects a further $30 million shortly, positioning it to have about $160 million of working capital in the near term to fund operations through 2026.
The package provides for access to up to $800 million capital through 2027 and beyond to support the electric vertical take-off and landing aircraft maker's flight testing, certification work and initial production of its Valo aircraft, among other operational purposes.
The financing comes against the backdrop of a broader industry push by air taxi startups heavily investing to secure approvals and commercialize eVTOL aircraft, to meet the growing demand for faster, more sustainable urban transportation amid a stringent regulatory environment.
Vertical Aerospace said it has partnered with investment management firms Mudrick Capital Management and Yorkville Advisors Global to assemble the financing package, with the former extending and adding to Vertical's convertible debt and the latter offering about $250 million in convertible preferred shares.
