Vertical Aerospace founder injects US$50 million into company

Vertical Aerospace (Vertical), a global aerospace and technology pioneer in zero-emissions aviation, has announced a substantial US$50 million investment from its founder, majority owner and CEO, Stephen Fitzpatrick. This funding infusion not only paves the way for upcoming financing rounds but also extends Vertical’s projected financial runway into Q2 2025. This capital injection will support the ongoing development of the certified aircraft design, following successful prototype testing this year. The certification aircraft will subsequently undergo final regulatory testing before transitioning to production.

This funding milestone arrives at a crucial juncture for Vertical Aerospace as it nears completion of its second-generation, full-scale piloted VX4 prototype at GKN Aerospace’s Global Technology Centre. The aircraft is set to perform a series of vital public flight demonstrations in 2024, including flights at the Farnborough International Airshow and to and from Heathrow Airport. These flights are expected to showcase the substantial technical and engineering advancements achieved with the VX4. Following this flight test programme and the planned public demonstrations, Vertical anticipates refining and finalising its aircraft design.

Fitzpatrick expressed his confidence in the company’s potential to lead in zero-carbon aviation, stating, “Given the success I have seen in the past 12 months, I am more confident than ever in our world-class team and I am delighted to further support the company with additional funding.”

The agreement between the company and Fitzpatrick includes an equity investment by Fitzpatrick, involving an initial tranche of US$25 million, expected to close by March 2024. This initial tranche comprises a combination of ordinary shares at US$10 per share and warrants with a US$5 exercise price. A second tranche of US$25 million is scheduled for no later than July 31, 2024, involving ordinary shares at a price per share to be determined. The second tranche amount may be reduced by any alternative equity funding secured by the company before the specified date.

As part of this transaction, shareholders will vote on specific changes to the company’s articles of association related to Board composition and shareholder meeting procedures. Additionally, Fitzpatrick will hold certain veto rights as long as his ownership of the company’s ordinary shares remains above particular thresholds, with regard to specific changes in the company’s articles, appointments and certain issuances of shares and other instruments. The completion of this transaction is subject to the execution of long-form agreements and other customary closing conditions. (£1.00 = US$1.28 at time of publication).