This term sheet secures a commitment to $50m in new funding, strengthening Vertical’s financial position. The funding will support the company’s newly launched Flightpath 2030 Strategy to establish itself as a global leader in the eVTOL market by the end of the decade, including the ongoing development and certification of the VX4.
The term sheet includes: a $50m funding commitment by Mudrick Capital, and the option for Stephen Fitzpatrick to invest a further $25m on the same terms, in addition to balance sheet strengthening, with approximately $130m of convertible notes (50% of the outstanding amount) converted into equity at $2.75 per share, substantially reducing Vertical’s debt.
According to Vertical, it also includes greater certainty for future investors due to the fixing of the conversion price for the remaining outstanding convertible notes.
The remaining loan repayment date extended to December 2028, and the company has renewed its commitment to the UK: Vertical will continue to operate from its UK headquarters, maintaining its brand identity and focus on innovation. 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 programme.
“We have been working hard to find a way to support the company in the short term, but also set us up for long term success. The additional equity, and stronger balance sheet will enable us to fund the next phase of our development programme and deliver on our mission to bring the amazing electric aircraft to the skies,” Fitzpatrick said.
