Vertical Aerospace founder Stephen Fitzpatrick has missed a deadline to make a second $25 million investment in the company, although the electric vertical take-off and landing (eVTOL) developer insists he remains committed to the business, with talks between the two parties ongoing.
Fitzpatrick in February agreed to inject up to $50 million into Vertical to maintain progress on the development of its VX4 aircraft.
That was split into two tranches: an initial $25 million was handed over on 13 March, while the remainder was due on 14 August.
However, in a filing to the US Securities & Exchange Commission (SEC) on 15 August, Vertical disclosed that the deadline had passed without any payment being made.
It has “neither received payment of any portion of the further investment”, nor notification of the price at which Fitzpatrick intended to subscribe to shares in Vertical, it says, and as such, the additional funding “remains outstanding”.
“A special committee of the board of directors of the company has been and remains in ongoing discussions with [Fitzpatrick],” the SEC notice says.
Until an agreement is reached with Fitzpatrick on the funding “its status remains uncertain”, it adds. In the meantime, the special committee “is exploring all options available to the company with respect to the further investment”.
“Stephen remains fully supportive of the company,” Vertical adds.
Fitzpatrick injected the first $25 million tranche via his Imagination Aero Investments business, a company incorporated on 5 February this year.
The agreement with Vertical enabled him to reduce the total of the second payment if additional investors could be brought on board.
As of 30 June, Vertical held cash and cash equivalents totalling approximately £67 million ($84 million) based on its unaudited management accounts, it says, including payments from Rolls-Royce related to the termination of an agreement on the supply of electric propulsion units.
“Vertical is focused on advancing through our piloted flight-test programme with our new, more advanced full-scale prototype and continuing to lay the groundwork for further fundraises.”
Vertical earlier this year bolstered its fund-raising team, appointing former Citi Group managing director Ben Story to its board and experienced corporate finance professional Charlotte Cowley as director of strategic finance.
