Mudrick Capital Secures Board Control and $1.30 Conversion Price in $35M Note Deal
EVTL is trading near its 52-week low of $0.77 (8.2% above the low).
Summary
Mudrick Capital's latest 13D/A discloses a Shareholder Agreement giving it board control and a reduced $1.30 conversion price on $35M in convertible notes, deepening its influence over Vertical Aerospace.
Key Events · Financing and Capital Events · EVTL
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Board Control Granted to Mudrick
Shareholder Agreement expands the board from 8 to 9 seats and gives Mudrick Capital nomination rights proportional to its 64.2% beneficial ownership, ensuring at least one Mudrick-affiliated director.
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Conversion Price Slashed to $1.30
The amended note purchase agreement cuts the conversion price on all convertible notes from $3.50 to $1.30 per share, a 63% reduction that increases potential dilution for existing shareholders.
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$35M Note Facility with Repurchase Right
Mudrick purchased $35M in additional convertible notes on August 12, 2026, and Vertical Aerospace retains the right to repurchase up to $35M of notes at 112% of principal plus accrued interest within one year.
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Registration Rights Accelerate Resale
Vertical Aerospace must file a resale registration statement within 15 days and have it effective within 45 days, allowing Mudrick to sell the underlying shares into the market.
Analysis · EVTL · Manufacturing
Mudrick Capital's amended 13D reveals a Shareholder Agreement that expands the board to nine seats and gives Mudrick nomination rights proportional to its 64.2% beneficial ownership, effectively handing it control of Vertical Aerospace's governance. The conversion price on the convertible notes was cut from $3.50 to $1.30, a 63% reduction that significantly increases potential dilution for existing shareholders. The deal also includes a repurchase right allowing the company to buy back up to $35M of notes at 112% of principal, and registration rights that will make the underlying shares freely tradable within 45 days.
At the time of this filing, EVTL was trading at $0.83 on NYSE in the Manufacturing sector, with a market capitalization of approximately $105.6M. The 52-week trading range was $0.77 to $7.33. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.