Vertical Aerospace Announces “Closing of USD60 Million Underwritten Public Offering”

UK-based Ver­ti­cal Aero­space recent­ly announced the clos­ing of its pre­vi­ous­ly announced under­writ­ten pub­lic offer­ing for total gross pro­ceeds of USD60 mil­lion, before deduct­ing under­writ­ing dis­counts, com­mis­sions and oth­er offer­ing expens­es, reports a press release.

Ver­ti­cal has sold 12 mil­lion ordi­nary shares at USD5 each, as well as grant­i­ng the under­writ­ers a 30-day option to pur­chase up to an addi­tion­al 1.8m at the pub­lic offer­ing price. This has not been exer­cised yet. So a major dilu­tion of shares by increas­ing the quan­ti­ty avail­able.

Ver­ti­cal intends to use the net pro­ceeds from the Offer­ing to fund its R&D expens­es as the eVTOL com­pa­ny con­tin­ues to devel­op its air­craft “and the ongo­ing expen­di­tures due to the expan­sion of the aircraft’s tri­alling and cer­ti­fi­ca­tion capac­i­ties, as well as for gen­er­al work­ing cap­i­tal and oth­er gen­er­al cor­po­rate pur­pos­es,” explains the release.

The net pro­ceeds from this Offer­ing extends the company’s cash run­way towards the mid­dle of 2026. Deutsche Bank Secu­ri­ties and William Blair act­ed as joint book-run­ners for the Offer­ing and D. Boral Cap­i­tal act­ed as co-man­ag­er.

It costs a huge amount of mon­ey to devel­op and bring an eVTOL to mar­ket and this lat­est injec­tion of cash will at least keep Ver­ti­cal finan­cial­ly afloat until June of next year, before yet anoth­er major finan­cial injec­tion is required.

Where that mon­ey comes from is anyone’s guess. What Ver­ti­cal real­ly needs is a major glob­al auto­mo­bile man­u­fac­tur­er to come onboard and heav­i­ly invest in the com­pa­ny as Joby and Archer, for exam­ple, have achieved.

Ide­al­ly, as this is such a unique and impor­tant British project, the UK Gov­ern­ment should step in and sup­port Ver­ti­cal, but giv­en the present polit­i­cal sit­u­a­tion, it is unlike­ly.

For more infor­ma­tion

https://vertical-aerospace.com/

(Top image: Ver­ti­cal Aero­space eVTOL)

For the lat­est news, insights and con­tent regard­ing the glob­al Advanced Air Mobil­i­ty mar­ket, please join the fol­low­ing eVTOL Insights chan­nels: What­sApp, Face­book, Insta­gram, Spo­ti­fy, Apple Pod­casts, YouTube, X and LinkedIn.