Mudrick Capital Tightens Grip on Vertical Aerospace with $100M Rescue Package and Governance Overhaul

summarizeSummary

Mudrick Capital is injecting $35 million in convertible notes and backing a $60 million equity/preferred raise, while slashing the note conversion price to $1.30 and taking board control — a lifeline that comes with heavy dilution and governance concessions.

check_boxKey Events · Financing and Capital Events · EVTL

• $100M Rescue Financing Package

  Mudrick Capital will purchase the remaining $35M of convertible notes, Yorkville will buy $25M in preferred shares, and a $35M common equity offering is planned at a minimum $1.00 per share — all part of a coordinated $100M lifeline.

• Conversion Price Slashed to $1.30

  The conversion price on all existing and new convertible notes drops from $3.50 to $1.30 per share, a 63% reduction that, if fully converted, would add 48.7M shares — massive dilution at a price near today's $1.35.

• Mudrick Seizes Board Control

  A new Shareholder Agreement gives Mudrick board seats proportional to its 55% stake (5 of 9 directors), the chairman role above 33% ownership, and committee representation — effectively handing control to the distressed debt investor.

• Employee Options Repriced to $1.30

  All existing employee options will be repriced to a $1.30 strike, and a new pool of 2.77M options is created — aligning insider incentives with the new, lower share price but further diluting existing holders.

auto_awesomeAnalysis · EVTL · Manufacturing

Mudrick Capital, already the dominant shareholder, is orchestrating a $100 million comprehensive financing that dramatically reshapes Vertical Aerospace's capital structure and governance. The conversion price on all convertible notes drops from $3.50 to $1.30 — a 63% reduction that, combined with a $35 million common equity raise at just $1.00 per share, signals severe dilution for existing holders. In exchange, Mudrick secures board control proportional to its 55% stake, a chairman seat above 33% ownership, and veto power over future share issuances. The deal also forces through a $25 million preferred issuance to Yorkville and reprices employee options to the new $1.30 floor. With certification delayed to 2029 and cash running low, this package keeps the company afloat but cements Mudrick's control and sets the stage for massive dilution if notes convert at the new, deeply discounted price.