Vertical Aerospace lists on the NYSE after completing business merger with Broadstone Acquisition Corp
Vertical Aerospace has announced the closing of its business combination with Broadstone Acquisition Corp and will begin trading on the New York Stock Exchange under the ticket EVTL.
The company made its intention to go public with Broadstone in June and at the same time, confirmed up to 1,000 pre-orders with launch customers American Airlines and Avolon and a pre-order option with Virgin Atlantic, valued at up to $4 billion.
Proceeds raised plus the issuance of convertible senior secured notes equals approximately $300 million, in excess of the circa $250 million projected spend through to certification and scale production. Vertical will ring the Opening Bell on the NYSE tomorrow (Friday), the same date as the Wright Brothers’ first flight 118 years ago.
Stephen Fitzpatrick, CEO, and Founder of Vertical, said “This listing is a landmark moment for Vertical Aerospace. We have global leaders in aviation as partners and a world-class team that can make zero emissions flight a reality for millions of people around the world. It is fantastic to reach this milestone and I am so proud of what the team has achieved.”
Hugh Osmond, Chairman of Broadstone, added: “Vertical Aerospace is at the forefront of electric aviation, a fast-growing sector that will dramatically reimagine the entire aviation market. With the endorsement of key partners, suppliers, and investors we are confident that our partnership with Stephen and Vertical’s gifted team of innovators will disrupt transportation over the next decade to come.”
A video of Vertical’s full-scale prototype, the VA4, was released last week and when operational, the piloted aircraft is projected to reach up to 200mph and transport four passengers one hundred times quieter than a helicopter. Vertical expects to reach full certification through what is believed to be the highest global certification, the European Union Aviation Safety Authority (EASA) by 2024 and commercial operability by the mid-2020s.
Public shareholders join PIPE investors American Airlines, Avolon, Honeywell, Microsoft’s M12, Kouros, Rolls-Royce, 40North and Rocket.
American Airlines is expected to work with Vertical on passenger options and infrastructure development in the USA. It has agreed to pre-order, subject to certain conditions precedent and future agreed upon milestones, up to 250 aircraft with an additional option to order 100 more.
Derek Kerr, Chief Finance Officer of American Airlines, said: “On behalf of American Airlines, I would like to congratulate Vertical on its listing a public company on the New York Stock Exchange. We are excited to partner with Vertical as we continue to work towards the development of emerging technologies that reduce carbon emissions in the aviation industry.”
Avolon – the international air crafting leasing company – has announced a ground-breaking deal worth $2 billion for 500 aircraft. Through its newly incorporated affiliate Avolon‑e, it will order aircraft valued at US$1.25 billion and has an option to acquire additional aircraft up to a value of US$750 million. Avolon‑e has been established by Avolon to focus on investment in the eVTOL sector.
Dómhnal Slattery, Chief Executive of Avolon, added: “Today is an important milestone for Vertical on its journey and we in Avolon are delighted to be part of it. In Vertical, we have identified a team that shares our ambition to reshape air travel. They have the right aircraft, deep industry experience and the financing in place to achieve the highest global safety certification; and scale production to meet demand.”
As well as Avolon, Virgin Atlantic also has an option to order between 50 and 150 aircraft and plans to work with Vertical as part of a joint venture to develop a Virgin Atlantic-branded short haul eVTOL network in the UK. This will look connect UK airport hubs, starting with London Heathrow as well as Manchester and London Gatwick.
Shai Weiss, Chief Executive of Virgin Atlantic, said: “Today is an exciting next step for our partners at Vertical Aerospace and we want to congratulate them on reaching the milestone of today’s listing. We look forward to working together towards our collective mission to make short haul, zero emission electric vehicle connectivity across the UK a reality. Virgin Atlantic is proud to be partnering with the pioneering team at Vertical to make this happen.”
A video of Vertical’s full-scale prototype, the VA4, was released last week and when operational, the piloted aircraft is projected to reach up to 200mph and transport four passengers one hundred times quieter than a helicopter. Vertical expects to reach full certification through what is believed to be the highest global certification, the European Union Aviation Safety Authority (EASA) by 2024 and commercial operability by the mid-2020s.
Vertical has continued to assemble and build its team of senior experienced engineers and seasoned aviation executives and expects its customers to be flying commercial missions in the mid-2020s.
Appointment include former Airbus CEO Eduardo Dominguez Puerta as its first Chief Commercial Officer, Dean Moore as Lead Flight Test Engineer and Tim Williams as Chief Engineer. Justin Paines also joined the growing team as its Lead test Pilot. Away from the aircraft, Andrew Macmillan joined as Director of Infrastructure and Harry Holt became Chief Operating Officer.
As well as American Airlines and Avolon, public shareholders in Vertical join other PIPE investors Honeywell, Microsoft’s M12, Kouros, Rolls-Royce, 40North and Rocket.
A live stream of the event and replay can be accessed by visiting https://www.nyse.com/bell
