Vertical Aerospace Finalizes $100M Financing: Cuts Note Conversion Price to $1.30, Grants Mudrick Board Rights
EVTL is trading near its 52-week low of $0.77 (10% above the low) on elevated volume (3.6× avg).
Summary
Vertical Aerospace finalized its $100M financing with Mudrick Capital and Yorkville, cutting the convertible note conversion price from $3.50 to $1.30 and granting Mudrick board nomination rights.
Key Events · Financing and Capital Events · EVTL
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Conversion Price Cut to $1.30
The Fourth Supplemental Indenture reduces the conversion price of all Convertible Senior Secured Notes from $3.50 to $1.30, increasing potential dilution for existing shareholders.
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$35M Mudrick Draw Accelerated
The remaining $35 million under the Mudrick Facility Draw was accelerated to on or before August 12, 2026, with proceeds earmarked for R&D and working capital.
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Mudrick Gains Board Rights
A new Shareholder Agreement grants Mudrick Capital director nomination, removal, and consent rights, including the ability to nominate directors proportional to its ownership stake.
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Yorkville Terms Aligned
The Series A Convertible Preferred Shares terms were amended and restated to align with the Indenture Amendment, including a conversion floor of $0.598.
Analysis · EVTL · Manufacturing
Vertical Aerospace executed definitive agreements for its $100 million financing package with Mudrick Capital and Yorkville. The key change is a reduction in the conversion price of all Convertible Senior Secured Notes from $3.50 to $1.30, which significantly increases potential dilution for existing shareholders. The company also accelerated the remaining $35 million Mudrick Facility Draw to August 12, 2026, and granted Mudrick Capital substantial governance rights, including director nomination and removal powers. This follows the agreement in principle announced on August 10, 2026, and finalizes terms that were previously non-binding. The conversion price cut is a material concession that reflects the company's urgent need for capital amid its going concern warning.
At the time of this filing, EVTL was trading at $0.85 on NYSE in the Manufacturing sector, with a market capitalization of approximately $105.2M. 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.