Vertical Aerospace Ltd, global aerospace and technology company that is pioneering zero emission aviation, has officially announced its financial results for the third quarter ended September 30, 2024.
According to certain reports, the stated report reveals how Vertical Aerospace signed an investment agreement with Mudrick Capital, the company’s primary creditor, and Stephen Fitzpatrick, its majority shareholder. This came shortly after an announcement of up to $50 million in new committed funding, which is to come as part of a transaction that will strengthen the company’s balance sheet by a grand total of $180 million.
Furthermore, we ought to mention that Vertical conducted, during the quarter, an extraordinary general meeting to vote upon certain amendments across the company’s memorandum and articles of association, in accordance with the investment agreement. Next up, it must be mentioned that the company also signed a separate agreement, which mandates Mudrick Capital not to enforce certain default rights. More on this agreement would reveal how it supports the transaction from all parties, and at the same, provides a foundation to Vertical’s financial stability as it executes its long-term plans.
Another detail worth a mention here is rooted in the fact that the funding, which has been committed as part of its next equity round, will strengthen Vertical’s financial position and advance “Flightpath 2030”, Vertical’s strategy for market leadership by the end of the decade, launched last month. You see, the relevant agreement will bring necessary funds to facilitate Vertical’s operations towards the end of 2025, while simultaneously removing or mitigating certain structural obstacles that have, thus far, impeded the company from accessing substantial third-party funding since its public listing.
“This has been a momentous quarter for the business. We have shared our strategic plan to lead the market by the end of the decade, begun what few in the industry have achieved with our piloted flight test programme, and signed a significant investment agreement that strengthens our balance sheet and funds us towards the end of next year. I could not be prouder of the team or more excited to get into 2025,” said Stuart Simpson, CEO at Vertical Aerospace.
Vertical’s results from the quarter also include its successful Phase 2 launch of its piloted flight test programme, which follows up on expansion of its Permit to Fly from the aviation authorities.
Among other things, we must mention that the company even won the Shaping the Future Award at the Aerospace Technology Institute (ATI) 2024 Aerospace Technology & Innovation Awards, where it was recognized for its groundbreaking advancements in zero-carbon emission aviation technology.
Finally, our last piece of highlight stems from Vertical’s industry-leading management of capital. You see, as of 30 September 2024, Vertical had $53.7 million of cash and cash equivalents on hand. On top of that, its new round of funding is also expected to close in Q1 of 2025.
Founded in 2016, Vertical’s rise up the ranks stems from creating a safer, cleaner and quieter way to travel. The same principles are evident in the company’s VX4 which happens to be a a piloted, four passenger, Electric Vertical Take-Off and Landing (eVTOL) aircraft, with zero operating emissions. In essence, Vertical places partnering with leading aerospace companies, including GKN Aerospace, Honeywell and Leonardo, next to developing its own proprietary battery and propeller technology for the purpose of reaching upon world’s most advanced and safest eVTOL.
The company’s excellence in what it does can also be understood once you consider it already has 1,500 pre-orders of the VX4 from customers across four continents, including American Airlines, Japan Airlines, GOL and Bristow. Headquartered in Bristol. Making Vertical’s case even stronger is its leadership which comes from top tier automotive and aerospace companies such as Rolls-Royce, Airbus, GM, and Leonardo. For better understanding, the stated leadership has previously certified and supported over 30 different civil and military aircraft and propulsion systems.
