UK eVTOL developer Vertical Aerospace has secured $50 million after CEO and founder Stephen Fitzpatrick committed to invest the equity capital into the company. The investment prepares the platform for further funding rounds and extends Vertical's projected cash runway into the second quarter of 2025. Fitzpatrick will commit an initial tranche of $25 million (at $10 per share and warrants with a $5 exercise price), expected to close by March 2024. A second tranche of $25 million (to close by the end of July 2024) will be set at a price yet to be determined and potentially reduced by the amount of alternative equity funding secured by Vertical as of that date.
On November 28, 2023, Vertical received a notice from the New York Stock Exchange (NYSE) indicating that the company was not compliant with the NYSE's continued listing standard as its average closing price over a 30 consecutive trading days period was below $1. To regain compliance with the NYSE's continued listing requirements, Vertical requires its ordinary shares to have an average closing price of at least $1 over the 30-day period ending on the last day of that month. After trading at over $1 on October 30, 2023 at $1.04, Vertical's NYSE stock closed at $0.58 on January 19, 2024.
This funding comes as the company nears the completion of its second-generation, full-scale piloted VX4 prototype at GKN Aerospace’s Global Technology Centre. The aircraft will conduct a series of key public flight demonstrations in 2024, including Vertical's intention to participate in the flying display at Farnborough International Airshow, flying to and from Heathrow Airport.
Fitzpatrick said: "the company has achieved significant technical progress both in its prototype programme and its certification plans in 2023, that I believe is not reflected in our share price."
Vertical is targeting type certification of its VX4 craft towards the end of 2026.