Vertical Aerospace, a global aerospace and technology company that is pioneering electric aviation, today announced the signing of an agreement in principle as part of a financing package totaling up to $850 million.

The new comprehensive financing package provides Vertical with access to a capitalized runway to build upon the Company’s significant operational progress and support achievement of its strategic milestones over the next 12 months and beyond. These include completing piloted transition flight, public flight demonstrations of the current prototype, progressing its hybrid-electric demonstrator, expanding the Vertical Energy Center, advancing construction of its aircraft manufacturing facility, and beginning production of the first full-scale Valo certification aircraft.

The Company is now positioned to have approximately $160 million of working capital in the near term, combining the $50 million of equity capital raised today and $30 million to be drawn under the facilities immediately on their execution with existing cash on hand and anticipated tax relief and government grants.

Overview of Comprehensive Financing Package

The comprehensive financing package is structured to provide Vertical with access to capital across multiple instruments. Mudrick Capital Management, L.P. and Yorkville Advisors Global, LP partnered with the Company to assemble the financing package. It comprises four components:

- Equity Capital Issuance – $50 million. The Company today closed the new issuance of ordinary shares, raising $50 million of immediate working capital.

Convertible Secured Notes – Maturity Extension and Up to $50 million of New Notes. Mudrick Capital has agreed as part of the agreement in principle to amend the Company’s existing 10.00% / 12.00% PIK Convertible Secured Notes to extend their maturity from December 2028 to December 2030 – ensuring debt matures after planned certification in 2028. Mudrick Capital also agreed in principle to provide a facility under which it would purchase up to $50 million of new additional convertible secured notes subject to certain conditions, issuable in tranches over 12 months, and on the same terms as the existing notes.

- Series A Convertible Preferred Equity – Up to $250 million. Yorkville has agreed in principle to purchase up to $250 million of Series A Convertible Preferred Shares of the Company, issuable at the Company's option in tranches over 24 months, subject to certain conditions. The preferred shares are to carry a 0% dividend, and convert at a share price determined at individual tranche issuance and conversion dates, in the ordinary course.

- Equity Line of Credit — Up to $500 million. Yorkville also has agreed in principle to provide an equity line of credit of up to $500 million over 36 months, with the ability for the Company to draw on it from time to time subject to customary conditions. This structure would enable Vertical to raise common equity at progressively higher prices as it achieves key milestones, capturing the full benefit of valuation appreciation for existing shareholders.

Pursuant to the agreement in principle, the parties have committed to use best efforts to execute the definitive documents by April 19, 2026, at which point the full suite of capital facilities would become available to the Company.

A Path to Certification-Driven Value Creation

This comprehensive financing package enables Vertical’s delivery of the technical and operational milestones on its strategic road map. Vertical also maintains freedom and flexibility to access other capital sources outside of the package in the future. By shoring up its balance sheet, the Company believes the market can now focus on its core product potential and business fundamentals.

"Today marks a new dawn for Vertical Aerospace. We have assembled a comprehensive, flexible financing package designed to execute our strategic plan, and materially strengthened our ability to build and certify Valo. We are grateful to Mudrick Capital and Yorkville for their support of our technology, team and mission." - Stuart Simpson, Chief Executive Officer, Vertical Aerospace

"We have backed Vertical Aerospace since 2021 because we believe they are building the most technically advanced aircraft in the industry. This financing package is designed to give Vertical ample runway and the financial foundation it needs to achieve certification, enter commercial service, and realize the substantial value we see in this business. We are proud to be deepening our commitment at this pivotal stage." - Jason Mudrick, Chief Investment Officer, Mudrick Capital Management

"Over the past year, we’ve had extensive conversations with existing and prospective shareholders about what matters most as we move through our next phase: disciplined, milestone-aligned access to capital. This financing package provides immediate working capital and provides management with flexible tools to access additional capital in a manner that promotes capital efficiency, as we progress through our certification milestones. We are more excited than ever about Vertical's prospects." - Dómhnal Slattery, Chairman of the Board, Vertical Aerospace

Agreement in Principle Status

The parties have reached an agreement in principle on the key terms of the proposed facilities. The agreement in principle is nonbinding and remains subject to the negotiation and execution of definitive agreements, completion of due diligence and satisfaction of various other conditions. There can be no assurance that the parties will enter into definitive agreements or that any transaction will be consummated on the terms currently contemplated, or at all.

Any descriptions of the terms of the proposed facilities contained herein are summaries only, are non‑binding and are subject in all respects to the negotiation, execution and delivery of definitive documentation and the satisfaction of any conditions precedent set forth therein. Access to the financing will be subject to the definitive agreements and market conditions.