Vertical Aerospace Secures $180 million Investment Agreement a global leader in aerospace and technology that is pioneering electric aviation, has finalized definitive agreements and secured shareholder approval for a transaction involving up to $50 million in new committed funding.
This milestone represents a significant step forward from the agreement in principle announced in November, aiming to bolster Vertical Aerospace Secures $180 million Investment Agreement balance sheet by approximately $180 million and accelerate the Company’s Flightpath 2030 strategy.
Stuart Simpson, CEO of Vertical, commented:
“Concluding this transformative year with a finalized funding commitment and strong shareholder support is a tremendous achievement. This sets the stage for what promises to be our most impactful year yet, featuring new investments, progress in piloted testing, and major technological advancements.”
Jason Mudrick, Founder and Chief Investment Officer at Mudrick Capital Management, added:
“Vertical is redefining global mobility, and we are proud to play a central role in positioning the company for success. We look forward to continuing our partnership with Vertical’s exceptional team, contributing capital market expertise, and supporting the realization of their groundbreaking innovations.”
Highlights of the Announcement:
- Funding Commitment by Mudrick Capital: On December 20, 2024, Mudrick Capital finalized an investment agreement committing $25 million in upfront funding and an additional $25 million as a backstop, subject to reductions based on amounts raised from third-party sources.
- Balance Sheet Strengthening: On December 23, 2024, Mudrick Capital converted $130 million of debt into equity at a conversion price of $2.75 per Ordinary Share. Additionally, the conversion price for the remaining $130 million was fixed at $3.50 per Ordinary Share. This transaction significantly reduces Vertical’s debt, enhances its financial stability, and extends the loan repayment date by two years to December 2028, aligning with the Company’s certification program.
- Enhanced Governance and Increased Share Capital: At an Extraordinary General Meeting (EGM) held on December 23, 2024, Vertical’s shareholders approved key governance amendments and an increase in authorized share capital. These include:
- Establishing a Board with a majority of independent directors.
- Granting Mudrick Capital proportional director nomination rights based on its share ownership (exceeding 10%).
- Expanding the Company’s authorized share capital from $110,000 (100 million ordinary shares and 10 million preferred shares) to $210,000 (200 million ordinary shares and 10 million preferred shares).
This announcement reinforces Vertical’s strategic vision and positions the Company for significant advancements in electric aviation, further solidifying its leadership in the industry.
Vertical Secures Transformative Funding and Governance Milestones
Vertical, a leader in electric aviation, has capped off a pivotal year with a landmark funding commitment and enhanced shareholder support. These developments mark the beginning of an ambitious new chapter for the company, poised to redefine the future of mobility through technological innovation and strategic progress.
Stuart Simpson, CEO of Vertical, emphasized the importance of this milestone, stating:
“Concluding this transformative year with a finalized funding commitment and strong shareholder support is a tremendous achievement. This sets the stage for what promises to be our most impactful year yet, featuring new investments, progress in piloted testing, and major technological advancements.”
Mudrick Capital’s Commitment to Vertical’s Vision
Mudrick Capital Management, a key partner in Vertical’s journey, has played an instrumental role in this phase of growth. Jason Mudrick, Founder and Chief Investment Officer of Mudrick Capital, highlighted their shared vision:
“Vertical is redefining global mobility, and we are proud to play a central role in positioning the company for success. We look forward to continuing our partnership with Vertical’s exceptional team, contributing capital market expertise, and supporting the realization of their groundbreaking innovations.”
Key Highlights of the Announcement
1. Funding Commitment by Mudrick Capital
On December 20, 2024, Mudrick Capital finalized an investment agreement that includes:
- An initial $25 million in upfront funding.
- An additional $25 million as a backstop, subject to reductions based on third-party funding contributions.
This substantial financial backing underscores Mudrick Capital’s confidence in Vertical’s long-term strategy and growth potential.
2. Strengthened Balance Sheet
Vertical’s financial stability received a significant boost on December 23, 2024, through a debt-to-equity conversion led by Mudrick Capital. Key elements include:
- Conversion of $130 million of debt into equity at a conversion price of $2.75 per ordinary share.
- Fixing the conversion price for the remaining $130 million of debt at $3.50 per ordinary share.
- Extension of the loan repayment deadline by two years, moving it to December 2028 to align with Vertical’s certification timeline.
This restructuring not only reduces Vertical’s debt burden but also enhances its financial flexibility, positioning the company for sustained growth and innovation.
3. Enhanced Governance and Share Capital Expansion
At an Extraordinary General Meeting (EGM) on December 23, 2024, Vertical’s shareholders approved several critical governance and capital amendments, including:
- Independent Board Governance: Establishing a board with a majority of independent directors to ensure balanced and strategic decision-making.
- Director Nomination Rights for Mudrick Capital: Proportional nomination rights based on Mudrick Capital’s shareholding, provided it exceeds 10%.
- Increased Authorized Share Capital: Expanding the company’s authorized share capital from $110,000 (100 million ordinary shares and 10 million preferred shares) to $210,000 (200 million ordinary shares and 10 million preferred shares).
These changes reflect a robust commitment to aligning governance structures with Vertical’s ambitious goals, while empowering shareholders and stakeholders to contribute meaningfully to the company’s vision.
A New Era in Electric Aviation
This announcement underscores Vertical’s unwavering commitment to advancing its strategic vision in electric aviation. By strengthening its financial foundation, enhancing governance, and securing critical funding, Vertical is well-positioned to accelerate the development of cutting-edge technologies and lead the transformation of global mobility.
With 2025 on the horizon, Vertical aims to solidify its position as a trailblazer in the industry, leveraging this momentum to deliver groundbreaking innovations and achieve significant milestones in piloted testing and technological progress. The company’s continued collaboration with Mudrick Capital and other partners ensures a strong trajectory toward realizing its transformative potential.
As Vertical embarks on this exciting phase, the electric aviation sector eagerly anticipates the impact of the company’s advancements on shaping a more sustainable and connected world.