LONDON - Vertical Aerospace (NYSE: EVTL), a company focused on electric aviation with a current market capitalization of $646 million, has initiated a public offering to raise $75 million. This offering includes units of ordinary shares and warrants, with the shares and warrants to be immediately separable upon issuance. William Blair is the lead bookrunner, with Canaccord Genuity acting as the joint bookrunner for the offering. According to InvestingPro data, the stock has experienced significant volatility, with a 45% gain over the past year despite recent pressure.
The company has stated that the proceeds from the offering will be used to fund research and development for their VX4 aircraft, expand testing and certification capacities, and for general corporate purposes. With a current ratio of 5.33, InvestingPro analysis shows the company maintains strong liquidity to meet its short-term obligations. Vertical’s ordinary shares are listed on the NYSE, although the offered warrants will not be listed on any exchange. Subscribers to InvestingPro can access 8 additional key insights about the company’s financial health and market position.
The offering is contingent on market conditions, and there is no certainty regarding the completion, size, or terms of the offering. The terms will be detailed in a final prospectus supplement to be filed with the U.S. Securities and Exchange Commission (SEC).
Vertical Aerospace is developing the VX4, an electric Vertical Take-Off and Landing (eVTOL) aircraft designed to carry four passengers with zero operating emissions. The company is collaborating with leading aerospace firms and developing proprietary technology to create this advanced eVTOL.
This press release includes forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially. The company cautions that the statements regarding the offering’s expected closing and use of proceeds, among other future operations, are forward-looking and not guarantees of future performance.
The information in this article is based on a press release statement from Vertical Aerospace.
In other recent news, Vertical Aerospace has seen numerous noteworthy developments. The company appointed Dómhnal Slattery as the new chairman of its Board of Directors, a move that reflects his extensive background in aviation finance and his previous role in leading the company’s strategic vision. Under his leadership, Vertical Aerospace has made significant strides in its business plan, including a $180 million enhancement to its balance sheet and securing $50 million of new committed funding.
Canaccord Genuity increased its price target for Vertical Aerospace to $16.00, maintaining a Buy rating for the stock. This adjustment was made in light of recent developments that are believed to bolster the company’s "Flightpath 2030" strategy aimed at becoming a leading global Original Equipment Manufacturer (OEM) for electric Vertical Take-Off and Landing (eVTOL) aircraft.
Furthermore, Vertical Aerospace has announced a financial package designed to support its strategic objectives, involving the company’s majority shareholder Stephen Fitzpatrick and primary creditor Mudrick Capital Management, providing up to $50 million in new funding.
The company has also made significant progress in its operations, including the completion of the first phase of piloted flight tests for its eVTOL aircraft, the VX4. This progress is supported by securing 1,500 pre-orders for the VX4 from clients across four continents.
Finally, Vertical Aerospace is scheduled to provide a business update in the near future, featuring CEO Stuart Simpson and other leadership team members. These developments underscore Vertical Aerospace’s ongoing efforts in the field of electric aviation.
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