Vertical Aerospace says it has received an additional $205 million in funding to support the development and certification of its VA-X4 electric vertical takeoff and landing (eVTOL) aircraft.
The news comes as Vertical awaits a merger with special purpose acquisition company (SPAC) Broadstone Acquisition Corp., which would make it the fourth eVTOL company to go public this year as part of similar mergers. The transaction is expected to close by the end of the year, but a date for when the SPAC’s shareholders will vote has not been announced. The transaction has anticipated gross proceeds of $394 million and a pro forma equity value of $2.2 billion.
Mudrick Capital is funding Vertical with $200 million through secured notes, which are subject to completion of customary closing conditions. This includes the completion of the proposed combination with Broadstone.
Kouros SA, who is contributing $5 million to this effort, is investing in the decarbonization of transport and energy production. As part of Vertical’s private investment in public equity (PIPE) program, Kouros is supporting companies such as:
- American Airlines
- Avolon
- Honeywell
- Microsoft’s M12
- Rolls-Royce
Vertical founder and CEO Stephen Fitzpatrick celebrated the news in a statement this week.
“We are delighted to welcome Mudrick Capital and Kouros as new partners to Vertical Aerospace. Their investments are more expert validation of our technology and approach to the exciting future of zero-emissions flight.”
Mudrick Capital founder and CIO Jason Mudrick added, “With this investment, the company now has the proper capitalization to bring electric flight into commercial operation by the middle of this decade and move towards high-scale production.”
The funds will be necessary as Vertical seeks to manufacture and certify the VA-X4, which the company says will cost around $250 million.
The VA-X4, a piloted eVTOL aircraft, will be capable of reaching speeds of more than 200 mph, according to the company. The passenger aircraft is expected to be 100 times quieter than a helicopter in cruise flight, with a range of more than 100 miles.
Expected to receive global certification in 2024, the VA-X4 will be certified to a safety standard equivalent to that of a passenger jet, according to Vertical. Vertical has already gained support across the aviation industry, including a recent partnership with Heathrow Airport, and it reports having up to 1,350 conditional pre-orders, worth $5.4 billion, already in its orderbook.
