Vertical Aerospace Maps Out $100M Rescue: $35M Notes, $25M Preferred, $35M Equity at $1.00 Floor, and a Governance Overhaul

summarizeSummary

Vertical Aerospace has agreed in principle to a $100 million financing package with Mudrick Capital and Yorkville, including $35M in convertible notes at a $1.30 conversion price, $25M in preferred shares, and a $35M equity offering at a $1.00 floor. The deal, coupled with a $66M cash balance, highlights a critical need for capital and would significantly dilute existing holders.

check_boxKey Events · Financing and Capital Events · EVTL

• $100M Financing Package Agreed in Principle

  A non-binding term sheet outlines a $100 million comprehensive financing for Vertical Aerospace, including $35M in convertible notes from Mudrick Capital, a $25M preferred share issuance to Yorkville, and a $35M common equity offering at a minimum price of $1.00 per share.

• Convertible Note Conversion Price Slashed to $1.30

  The conversion price on all existing and new convertible notes will be reduced from $3.50 to $1.30, significantly increasing potential dilution for existing shareholders.

• Cash Position of $66M Highlights Urgency

  As of June 30, 2026, the company held only £50 million ($66 million) in cash, emphasizing the critical need for the financing to fund ongoing R&D and operations.

• Governance Overhaul Grants Mudrick Board Control

  The deal expands the board to nine directors, with Mudrick Capital gaining nomination rights proportional to its ownership, the right to designate the chairman if it holds 33%+, and committee representation.

auto_awesomeAnalysis · EVTL · Manufacturing

Just two days after Mudrick Capital's 13D/A flagged the framework, Vertical Aerospace has agreed in principle to a $100 million comprehensive financing package with Mudrick and Yorkville. The deal—comprising $35 million in convertible notes with a conversion price slashed to $1.30, a $25 million preferred share issuance to Yorkville, and a $35 million common equity offering at a minimum of $1.00 per share—is deeply dilutive at current prices. Underscoring the urgency, the company disclosed a cash position of only £50 million ($66 million) as of June 30, 2026. Governance changes hand Mudrick significant board control, including nomination rights and an expansion to nine directors. While the agreement remains non-binding, the terms signal a desperate push for survival funding, with existing shareholders facing substantial dilution if the deal closes.