Vertical Aerospace Takes Flight with $50M Boost

Vertical Aerospace, a leading player in the electric aviation sector, has secured a significant financial boost with a $50 million commitment from Mudrick Capital, as part of a comprehensive $180 million transaction. This strategic move aims to strengthen Vertical's financial position and accelerate its Flightpath 2030 Strategy, further solidifying its status as a global leader in the emerging eVTOL market.

The agreement, signed among Vertical, its majority shareholder Stephen Fitzpatrick, and primary creditor Mudrick Capital Management, comprises several key components. Mudrick Capital will provide a $50 million funding commitment, including $25 million in upfront funding and an additional $25 million backstop that can be reduced by any amounts raised from third parties. Stephen Fitzpatrick, Vertical's founder, has the option to invest a further $25 million on the same terms.



The transaction also involves the conversion of approximately $130 million of convertible notes (representing 50% of the outstanding amount) into equity at $2.75 per share. This conversion substantially reduces Vertical's debt, significantly deleveraging its balance sheet, and enhances its financial position. Additionally, the conversion price for the remaining outstanding convertible notes will be fixed at $3.50 per share, providing greater certainty for future investors and supporting Vertical's fundraising plans.

As part of the agreement, Vertical Aerospace's founder, Stephen Fitzpatrick, will remain on the board, continuing to provide strategic direction as the company progresses through its certification program. This move underscores Vertical's commitment to maintaining a strong leadership team and focus on innovation.

The remaining loan repayment date has been extended to December 2028, offering Vertical additional financial security and flexibility to concentrate on achieving its certification goals and advancing its Flightpath 2030 Strategy.

Vertical's recent advancements in its piloted flight test program, including the successful completion of untethered, piloted thrustborne flight in Phase 2, demonstrate the company's commitment to delivering on its promises. With the VX4 prototype performing beyond expectations, the company is now working with the UK Civil Aviation Authority to secure permits for wingborne flight tests, a critical step toward certification.



The $50 million funding commitment from Mudrick Capital addresses Vertical Aerospace's immediate capital needs and positions the company well for long-term funding. By converting $130 million in debt to equity, the company significantly strengthens its balance sheet, improving its debt-to-equity ratio from 0.52 to 0.26. This transaction enhances Vertical's financial stability and solvency, setting the stage for future growth and success in the eVTOL market.

Fixing the conversion price for remaining convertible notes at $3.50 per share provides greater certainty for future investors, supporting Vertical's fundraising plans and boosting investor confidence. This move signals Vertical's commitment to transparency and predictability, fostering a positive investment environment.

The extension of the loan repayment date to December 2028 offers Vertical Aerospace additional financial flexibility, allowing the company to focus on advancing its certification program and strategic planning. With this extension, Vertical gains more time to secure further funding and strengthen its balance sheet, rather than being constrained by short-term loan repayment pressures.

Vertical Aerospace's recent funding announcement underscores the company's strong financial position and commitment to its Flightpath 2030 Strategy. As the global leader in the eVTOL market, Vertical is well-positioned to capitalize on the growing demand for sustainable, electric aviation. Investors seeking stability, predictability, and consistent growth should take note of Vertical Aerospace's potential as a lucrative, 'boring but lucrative' investment opportunity.