Vertical Aerospace has closed a deal under which it raised $90 million in proceeds, generating cash needed to help fund continued development of its VX4 electric air taxi.
The UK-based company, whose shares are publicly traded on the New York Stock Exchange, said on 24 January it had completed the deal.
The firm previously said it would likely receive $85.7 million in cash after subtracting fees and expenses. The company raised the money by selling 15 million shares of newly issued stock at $6 per share, alongside share warrants.
“Vertical intends to use the proceeds from this offering to fund its research and development expenses as Vertical continues to develop the VX4, and its expenditures in the expansion of its testing and certification capacities”, the company says.
It says the raise will ”enable an acceleration of spending in the second half of the year compared to prior plans”.
Vertical ended 2024 with cash and equivalents of £22.5 million ($27.7 million), down from £42.8 million at the end of September.
The company announced plans for the capital raise several days ago, initially expecting to generate $75 million in gross proceeds. It then bumped up the estimate to $90 million.
Of that amount, new investors accounted for $60 million and existing investor Mudrick Capital accounted for $25 million, Vertical says. Mudrick had in 2024 committed $50 million to the company, $25 million of which was as a backstop for the investment round.
Investors who purchased shares under the deal also received warrants granting them the right to purchase more shares at the set prices of $6 for one tranche of warrants and $7.50 for another.
Vertical aims to achieve certification of VX4, an electric-powered vectored thrust design, in 2028.
