Vertical Aerospace Founder Calms Stock Market Investors with Additional “USD50 Million Investment Commitment”
It has been a tough period for Vertical Aerospace and its investors since the company’s VX‑4 eVTOL Aircraft crashed last August, at the UKs Cotswold Airport during flight testing, due to a bonding issue with a propellor. Rumours of the company running out of money as well as a strong possibility of being ejected from the NYSE Stock Exchange for a consistently low share price, has overshadowed the company.
So, the news today that Vertical’s Founder and CEO, Stephen Fitzpatrick, has himself committed to invest a whopping USD50 million as equity capital in to the company was met with relief from investors.
Fitzpatrick’s investment comes at a vital period for the company as it nears the completion of its second generation, full-scale piloted VX‑4 prototype at GKN Aerospace’s Global Technology Centre. The money provides a platform for further funding rounds and extends Vertical’s projected cashflow in to Q2 2025, supporting the continued development of the certification aircraft design, following testing later this year. This aircraft will then go into final regulatory trialling before production.
The VX‑4 is to conduct a series of key public flight demonstrations in 2024, including an aim to fly at Farnborough International Airshow as well as to and from Heathrow Airport. Following this flight test program and planned public demonstrations, Vertical expects to be in a position to refine and finalise its eVTOL design.
Stephen Fitzpatrick
Fitzpatrick commented, “The company has achieved significant technical progress both in its prototype program and its certification plans in 2023, that I believe is not reflected in our share price. Given the success I have seen in the past 12 months, I am more confident than ever in our world class team, and I am delighted to further support the company with additional funding.”
There will be an initial tranche of USD25 million at USD10 per share as well as a USD5 dollar exercise price, followed by a later second tranche of USD25 million (no later than the end of July), at a price to be determined.
As part of the transaction, shareholders will vote on certain changes to the company’s articles of association with respect to Board composition and proceedings at shareholder meetings; while the company will provide certain veto rights to Stephen Fitzpatrick, for so long as his holding of ordinary shares remains above certain thresholds.
Mike Flewitt, Chairman of Vertical, said, “I am delighted that Stephen has committed to further funding Vertical. We are on track to deliver a transformative UK developed electric aircraft to our customers across the globe.”
It is easy to forget that Vertical Aerospace has:-
: Pre-orders for 1,500 VX4 Aircraft Worth over USD5 billion from more than a dozen customers worldwide. This covers airlines, aircraft lessors, helicopter operators, mobility firms and tourism groups including American Airlines, Virgin Atlantic, Avolon, Bristow, Marubeni, Kakao Mobility, Iberojet and FLYINGGROUP, as well as Japan Airlines (JAL), Gol, Air Greenland, Gozen Holding and AirAsia, through Avolon’s VX‑4 placements.
: A top-tier partner ecosystem which include Honeywell Aerospace, Leonardo, Hanwha, Dassault Systèmes, Molicel, and GKN Aerospace.
: Received Design Organisation Approval (DOA) from the UK Civil Aviation Authority (CAA) last March.
: Completed the thrust-borne test campaign with the full-scale VX4 prototype last August.
: Completed initial Technical Familiarisations with five global aviation regulators, proceeding to a key design review for the VX4.
: Started final assembly for the second VX4 full-scale piloted prototype which includes the technologies from the majority of the VX4’s certification aircraft partners.
: Strengthened the senior engineering team with hires across aircraft design, flight test, airworthiness and powertrain.
The final assembly of Vertical’s second, more advanced full-scale VX4 prototype, features improvements that include next generation propellers and proprietary battery pack technology, which has been developed at its Vertical Energy Centre.
While you need the courage of a lion to buy shares in Vertical Aerospace at present, yet given how low the price is, for the brave the upside medium-term could be huge, if Fitzpatrick’s investment goes to plan. Yet, if the VX‑4 suffers another crash during flight testing, who knows what may happen? But that’s the gamble.
For more information
https://vertical-aerospace.com
(Top image: VX‑4 Aircraft — credit Vertical Aerospace)
