Vertical Aerospace plummets after pricing $90M fundraiser
Published: 15:31 23 Jan 2025 GMT
Vertical Aerospace Ltd (NYSE:EVTL) shares plummeted over 38% on Thursday after the air taxi maker unveiled pricing for an upsized US$90 million funding round.
Units encompassing shares and warrants would be sold at US$6 each, the company said on Thursday, below its Wednesday closing price of US$9.20.
Vertical had initially signalled plans to raise US$75 million earlier in the week, with Thursday’s update adding the increased offering would close on or about Friday.
“Vertical intends to use the net proceeds from the offering to fund its research and development expenses,” it said, alongside general working capital.
The Bristol, UK-based company is currently developing an electric aircraft, known as the VX4, designed to be capable of taking off and landing vertically.
Under the placing, investors would receive half a Tranche A and Tranche B warrant respectively per unit.
Wholly exercisable at US$6 and US$7.50 per share each, Vertical added one of the conditions of the former expiring would be a successful wing-borne flight of the VX4.
Shares were down 38.2% at US$5.69 on Thursday.
