Charles Alcock is managing editor of the AIN Media Group, having rejoined the company in 2019. He has been an aviation journalist since 1986, and previously worked for AIN from 1990 to 2017, most recently as editor-in-chief. His main focus is on covering new aviation technology and business models, as well as international news.
Having been raised in the London area, Alcock studied at the University of Manchester in the UK and earned an honors degree in Politics and Modern History. He speaks English and French, and some German.

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Charles Alcock

Vertical Aerospace has bolstered its financial foundations with $50 million in additional funding to support its efforts to bring the VX4 eVTOL aircraft to market. On November 25, the UK start-up announced an agreement under which Mudrick Capital committed to providing the amount through a fresh equity round that will also involve converting around $130 million of debt into equity.
The funding from Mudrick, which specializes in backing “stressed and distressed” companies, includes an upfront payment of $25 million and an additional “backstop” of up to $25 million to cover any shortfall in funding from third parties. Vertical’s founder Stephen Fitzpatrick retains an option to invest a further $25 million on the same terms.
The $130 million in convertible notes will be converted into equity at a price of $2.75 per share and represents approximately half of Vertical’s total debt. The remaining convertible notes will be priced at $3.50 per share, with the remaining loan payment date extended to December 2028.
On September 20, Vertical was obliged to resort to a <a href="https://www.ainonline.com/aviation-news/futureflight/2024-09-17/vertical-splits-stock-evtol-aircraft-developer-seeks-new">one-for-ten split of its shares</a> to remain compliant with New York Stock Exchange rules after its shares traded below the $1 mark for several months. When trading closed on November 22, the split stock was priced at $4.79.
In March, Fitzpatrick invested a further $25 million in the company based on an equity price of $10 per share and pledged another $25 million by July 31 based on a price to be determined. This second tranche of capital has not yet been provided. On October 23, Mudrick, as one of Vertical’s largest shareholders, had made a <a href="https://d18rn0p25nwr6d.cloudfront.net/CIK-0001867102/8ed8fbc6-51c9-498c-a7db-ffbb5c2080c9.pdf">filing with the Securities and Exchange Commission</a> proposing a path to raising a further $75 million.
<h2>Funding Backs Deferred Path to Commercial Operations</h2>
“This funding agreement underscores the strong confidence of our investors in our Flightpath 2030 Strategy and our ambition to lead the global eVTOL market,” said Vertical CEO Stuart Simpson. “By addressing our more immediate capital needs and positioning us well to secure funding for the long-term, we can focus on advancing our piloted flight test program and bring the VX4 to market.”
Vertical’s management team rolled out the <a href="https://www.ainonline.com/aviation-news/futureflight/2024-11-12/vertical-pushes-back-evtol-certification-says-new-funding">Flightpath 2030 strategy</a> on November 12, announcing that projected type certification of the four-passenger aircraft has been pushed back from 2026 to 2028. Announcing third quarter results, the company said it had £42.8 million ($54.5 million) in cash and cash equivalents as of September 30, based on unaudited managements accounts. It expects to burn through cash at about the same rate as for the past 12 months, which has seen an outlay of £78.4 million.
At Cotswold Airport in the southwest of England, the Bristol-based company is now engaged in the second phase of untethered, piloted flight testing with a full-scale prototype. It is building a third aircraft and is in the process of seeking a permit from the UK Civil Aviation Authority to start wingborne flight tests.
The new backing from Mudrick is based on a <a href="https://www.sec.gov/Archives/edgar/data/1867102/000110465924122277/tm2429432d1_6k.htm">non-binding term sheet</a> that is subject to implementation and execution of final transaction agreements. It will also have to be cleared by shareholders through approval to amendments to Vertical’s articles of association.
Under the terms of the agreement, Fitzpatrick will retain a strategic role as a board director. He has previously served as CEO and chairman. The board is now chaired by non-executive director and former automotive executive Michael Flewitt and the company is led by CEO Stuart Simpson.

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