Electric Aviation Company Vertical Aerospace Bags $50M Funding: What's Going On?
Portfolio Pulse from Lekha Gupta
Vertical Aerospace Ltd (NYSE:EVTL) has received a committed funding of $50 million from its founder, CEO, and majority owner, Stephen Fitzpatrick. The funding is structured in two tranches, with the first $25 million including ordinary shares at $10 per share and warrants with a $5 exercise price, closing by March 2024. The second tranche of $25 million will close by July 31, 2024. This investment extends Vertical's cash runway into Q2 2025 and supports the development of its VX4 aircraft, which has already achieved significant milestones in 2023, including pre-orders worth over $5bn. Vertical's unaudited results for 2023 show a net cash use of $95 million in operating activities. EVTL shares saw a premarket increase of 0.99% to $0.5898.
January 22, 2024 | 11:23 am
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Vertical Aerospace Ltd has secured $50 million in funding from CEO Stephen Fitzpatrick, which will support the development of the VX4 aircraft and extend the company's cash runway into Q2 2025.
The committed funding from the CEO is a strong vote of confidence in the company's future and its VX4 aircraft. This financial backing is likely to be viewed positively by investors as it provides stability and supports ongoing development, which could lead to a short-term increase in the stock price. The premarket increase in share price also indicates a positive investor reaction to the news.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100