- The company today raised $50 million of common equity and expects to receive a further $30 million over the coming weeks, representing approximately $160 million of available capital to execute key certification milestones over the remainder of 2026.
- In addition to the equity raise, the new comprehensive financing package agreement in principle provides for access to up to $800 million in additional committed capital, across a range of facilities through 2027 and beyond.
- Existing convertible notes held by Mudrick Capital to be amended to extend maturity from December 2028 to December 2030, ensuring debt matures after planned 2028 certification and first Valo deliveries to customers; Mudrick also to purchase up to $50 million of new additional convertible secured notes.
- Financing package structured to give Vertical ability to optimize its facility options to promote capital efficiency and access capital when and how it chooses.
Vertical Aerospace (NYSE:EVTL) ("Vertical" or "the Company"), a global aerospace and technology company that is pioneering electric aviation, today announced the signing of an agreement in principle as part of a financing package totaling up to $850 million.
Vertical's Valo certification aircraft, launched in December 2025.
The new comprehensive financing package provides Vertical with access to a capitalized runway to build upon the Company's significant operational progress and support achievement of its strategic milestones over the next 12 months and beyond. These include completing piloted transition flight, public flight demonstrations of the current prototype, progressing its hybrid-electric demonstrator, expanding the Vertical Energy Center, advancing construction of its aircraft manufacturing facility, and beginning production of the first full-scale Valo certification aircraft.
The Company is now positioned to have approximately $160 million of working capital in the near term, combining the $50 million of equity capital raised today and $30 million to be drawn under the facilities immediately on their execution with existing cash on hand and anticipated tax relief and government grants.
Overview of Comprehensive Financing Package
The comprehensive financing package is structured to provide Vertical with access to capital across multiple instruments. Mudrick Capital Management, L.P. ("Mudrick Capital") and Yorkville Advisors Global, LP ("Yorkville") partnered with the Company to assemble the financing package. It comprises four components:
- Equity Capital Issuance – $50 million. The Company today closed the new issuance of ordinary shares, raising $50 million of immediate working capital.
- Convertible Secured Notes – Maturity Extension and Up to $50 million of New Notes. Mudrick Capital has agreed as part of the agreement in principle to amend the Company's existing 10.00% / 12.00% PIK Convertible Secured Notes to extend their maturity from December 2028 to December 2030 – ensuring debt matures after planned certification in 2028. Mudrick Capital also agreed in principle to provide a facility under which it would purchase up to $50 million of new additional convertible secured notes subject to certain conditions, issuable in tranches over 12 months, and on the same terms as the existing notes.
- Series A Convertible Preferred Equity – Up to $250 million. Yorkville has agreed in principle to purchase up to $250 million of Series A Convertible Preferred Shares of the Company, issuable at the Company's option in tranches over 24 months, subject to certain conditions. The preferred shares are to carry a 0% dividend, and convert at a share price determined at individual tranche issuance and conversion dates, in the ordinary course.
- Equity Line of Credit — Up to $500 million. Yorkville also has agreed in principle to provide an equity line of credit of up to $500 million over 36 months, with the ability for the Company to draw on it from time to time subject to customary conditions. This structure would enable Vertical to raise common equity at progressively higher prices as it achieves key milestones, capturing the full benefit of valuation appreciation for existing shareholders.
Pursuant to the agreement in principle, the parties have committed to use best efforts to execute the definitive documents by April 19, 2026, at which point the full suite of capital facilities would become available to the Company.
A Path to Certification-Driven Value Creation
This comprehensive financing package enables Vertical's delivery of the technical and operational milestones on its strategic road map. Vertical also maintains freedom and flexibility to access other capital sources outside of the package in the future. By shoring up its balance sheet, the Company believes the market can now focus on its core product potential and business fundamentals.