Vertical Aerospace closes $60 million public offering

LONDON & NEW YORK - Vertical Aerospace (NYSE:EVTL), a company developing electric aircraft, announced Friday the closing of its previously announced underwritten public offering, raising $60 million in gross proceeds.

The aerospace firm sold 12 million ordinary shares at $5.00 each and granted underwriters a 30-day option to purchase up to an additional 1.8 million shares at the same price, which has not yet been exercised.

Vertical Aerospace plans to use the proceeds to fund research and development as it continues to develop its aircraft, expand testing and certification capacities, and for general working capital purposes. The company stated the funding extends its cash runway toward mid-2026. InvestingPro analysis indicates the company has been quickly burning through cash, though it maintains more cash than debt on its balance sheet.

Deutsche Bank Securities and William Blair served as joint bookrunners for the offering, with D. Boral Capital acting as co-manager.

Vertical Aerospace is developing the VX4, a piloted, four-passenger electric vertical take-off and landing (eVTOL) aircraft designed to produce zero operating emissions. The company is also developing a hybrid-electric variant.

The company reports having approximately 1,500 pre-orders for the VX4 from customers including American Airlines, Japan Airlines, GOL and Bristow, though it notes some customer obligations are expected to be fulfilled via third-party agreements.

Based in Bristol, UK, Vertical Aerospace combines partnerships with aerospace companies including GKN, Honeywell and Leonardo with its own proprietary battery and propeller technology development. While the company currently shows weak financial health metrics according to InvestingPro, analysts expect net income growth this year. For deeper insights into Vertical Aerospace’s financial outlook and detailed analysis, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

This information is based on a press release statement from the company.

In other recent news, Vertical Aerospace has launched a $60 million public share offering, pricing its ordinary shares at $5 each. The company plans to use the proceeds to advance research and development, expand testing and certification capacities, and support general working capital needs. In a related development, Bristow Group Inc. has expanded its partnership with Vertical Aerospace, placing a pre-order for up to 100 VX4 aircraft. This partnership aims to lower barriers for eVTOL operators by providing a comprehensive operations platform. Analysts at H.C. Wainwright have raised their price target for Vertical Aerospace to $15 from $12, maintaining a Buy rating. This adjustment reflects expectations of increased revenue from eVTOL applications in defense and public safety sectors. Additionally, Vertical Aerospace has secured approximately 1,500 pre-orders from prominent airlines, including American Airlines and Japan Airlines. The company has also recently completed a significant wingborne flight of its eVTOL in European airspace, marking a milestone in its development efforts.

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