Vertical Aerospace launches $90m upsized funding round
January 24, 2025
Vertical Aerospace is seeking to raise $90 million through a new public offering of shares, priced at $6 apiece, with their redemption timelines linked to the ongoing flight test progress of Vertical’s VX4 aircraft.
Originally disclosed on Wednesday in a US Securities and Exchange Commission (SEC) filing, the initial $75 million total was raised to $90 million in a press release issued yesterday. Each unit will consist of half each of a Tranche A and Tranche B warrant; the latter expiring five years from the date of issuance. However, among the clauses imposed on the Tranche A warrants include Vertical successfully demonstrating a wing-borne flight of its VX4 prototype.
In November 2024, Vertical achieved the inaugural untethered flight of its second aircraft, following which – pending regulatory approval – it will progress to wingborne flight; “effectively redoing what [Vertical] did on aircraft one with a pilot on board,” said chief technology officer Michael Cervenka last June. All being well, this is a milestone that could likely happen this year, as – in the words of chief engineer David King – “we continue to work alongside our regulator to develop the safest and most advanced eVTOL in the world”.
As detailed in the SEC filing, proceeds will be used to “fund [Vertical’s] research and development expenses as Vertical continues to develop the VX4 and its expenditures in the expansion of its testing and certification capacities”.
As of 30 September 2024, Vertical’s balance sheet stood at £42.8 million, with approximately £25 million remaining as of 20 December. On 23 December, Vertical reached a new strategic agreement with investor Mudrick Capital, strengthening its balance sheet and extending its cash runaway beyond the first quarter of 2025. In a SEC filing at the time, Vertical confirmed that it intended to “launch and complete the [new] equity placement during the first quarter of 2025”.
