Vertical Aerospace, a global aerospace and technology company that is pioneering electric aviation, has announced the signing of ‘an agreement in principle’ as part of a financing package totalling up to $850 million that provides Vertical with access to ‘a capitalised 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 achievements include completing piloted transition flight, public flight demonstrations of the current Valo prototype, progressing its hybrid-electric demonstrator, expanding the Vertical Energy Centre, advancing construction of its aircraft manufacturing facility, and the start of production of the first full-scale Valo certification aircraft.
Stuart Simpson, Vertical Aerospace’s CEO, said: “This marks a new dawn for Vertical Aerospace. We have assembled a comprehensive, flexible financing package designed to execute our strategic plan and materially strengthen our ability to build and certify Valo. We are grateful to Mudrick Capital and Yorkville for their support of our technology, team and mission.”
Jason Mudrick,
Mudrick Capital Management's chief investment officer, said: “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 realise the substantial value we see in this business. We are proud to be deepening our commitment at this pivotal stage.”
Dómhnal Slattery, Vertical Aerospace’s chairman of the board, added: “Over the past year, we have 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.”