A Bristol company developing a ‘flying taxi’ is close to securing a £640,000,000 deal that will help it launch its first commercial flight.
Vertical Aerospace was set up by Ovo Energy boss Stephen Fitzpatrick a decade ago and is based on Chapel St in the city. The business, which is listed on the New York Stock Exchange, is developing an all-electric vertical take-off and landing (EVTOL) aircraft.
The firm has signed an agreement in principle for the financing package, which will be used to achieve several “strategic milestones” over the next year. These include flight testing, certification work and beginning production of its first full-scale Valo aircraft.
The company has partnered with US investment firms Mudrick Capital Management and Yorkville Advisors Global to assemble the package, with Mudrick agreeing to extend and add to Vertical’s convertible debt, while Yorkville has offered about £188,000,000 in convertible preferred shares. Following the agreement, it is understood that Vertical Aerospace now has around £120,000,000 in working capital for use in the near term.
Stuart Simpson, Chief Executive of Vertical Aerospace, said: “Today marks a new dawn for Vertical Aerospace. We have assembled a comprehensive, flexible financing package designed to execute our strategic plan, and materially strengthened our ability to build and certify Valo. We are grateful to Mudrick Capital and Yorkville for their support of our technology, team and mission.”
The news of the deal comes amid an industry push by tech firms developing electric flying vehicles to reach the commercialisation stage as demand for faster and greener aviation grows. Last year, Vertical Aerospace said its aircraft could be ready for commercial use by 2028 if it secured financing. The company is planning to build a new factory at Cotswold Airport, near Kemble in Gloucestershire, next to its existing flight test centre, where it hopes to produce around 25 VX4 aircraft a year.
Last May, Vertical Aerospace made European aviation history by successfully piloting a VX4 prototype flight across the UK countryside.
Dómhnal Slattery, Chairman of Vertical Aerospace, added: “Over the past year, we’ve 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.”
Image source: Vertical Aerospace
