Vertical Aerospace (Vertical), an aerospace and technology company at the forefront of electric aviation, has signed a term sheet with its majority shareholder Stephen Fitzpatrick and primary creditor Mudrick Capital Management. This agreement secures a US$50 million funding commitment, bolstering the company's financial position and supporting its recently launched Flightpath 2030 strategy.
The funding will play a crucial role in advancing Vertical's ambition to establish itself as a leader in the eVTOL (electric vertical take-off and landing) market by the end of the decade. The strategy focuses on the continued development and certification of the VX4 aircraft.
Under the agreement, Mudrick Capital has committed to providing US$25 million upfront and an additional US$25 million as a backstop, which will be reduced if funding is secured from third parties. Fitzpatrick retains the option to invest an additional US$25 million on the same terms.
In a significant step to improve its financial health, Vertical will convert approximately US$130 million of its outstanding convertible notes into equity at US$2.75 per share. This move reduces the company's debt by 50%, significantly deleveraging its balance sheet and creating greater stability for future fundraising. The remaining convertible notes will have a fixed conversion price of US$3.50 per share, providing additional clarity and certainty for future investors.
The agreement also extends the repayment date for the remaining loan to December 2028, offering further security as Vertical advances through its certification programme.
Vertical Aerospace remains committed to operating from its UK headquarters, reinforcing its focus on innovation and its UK identity. Founder Stephen Fitzpatrick will continue to serve on the board, offering strategic guidance as the company progresses towards achieving its certification goals and strengthening its position in the eVTOL market.
