Vertical Aerospace announced Monday it has signed an agreement in principle for a comprehensive financing package that would grant them an immediate $80 million near-term capital injection, split between a $50 million equity raise and a further $30 million expected within weeks, as part of a broader package that may reach up to $850 million if fully executed.

The announcement came just days after the UK-based company disclosed a precarious cash position that triggered a sharp stock decline and led to investors’ legal scrutiny.

On March 24, the electric vertical takeoff and landing (eVTOL) developer released its full-year 2025 financial results and filed its annual report with the U.S. Securities and Exchange Commission. The company reported it had ended the year with cash and cash equivalents of approximately $93 million, and projected net cash outflows of around $195 million over the next twelve months. Management acknowledged in the filing that its existing resources would fund operations only for a limited period.

Markets reacted to Vertical’s disclosure. Following the earnings release, shares in Vertical fell approximately 20%. Shortly after, shareholder rights law firm Johnson Fistel announced it was investigating potential claims on behalf of investors, examining whether Vertical’s executive officers had complied with federal securities laws in their disclosures. Similarly, The Schall Law Firm opened an inquiry, examining whether the company failed to disclose information pertinent to investors. Both investigations remain ongoing.

For context, based on financial guidance issued by Vertical Aerospace’s U.S. competitors in their own 2025 full-year earnings call, Carbon Free Aviation’s annualized estimate of Joby’s 2026 cashburn will be in the range of $680 to $740 million, while Archer’s range is roughly $640 to $720 million. Both ranges are remarkably similar, and both are multiples of what Vertical is projecting it will spend in 2026.

Then, on Monday, March 30, Vertical announced it had signed an agreement in principle for a financing package, bringing available near-term capital to approximately $160 million, enough, the company said, to execute critical certification milestones planned for the remainder of 2026.

The broader financing package includes multiple instruments, such as convertible notes, preferred equity, and an equity line of credit, assembled in partnership with investors including Mudrick Capital Management and Yorkville Advisors Global. If fully executed, the package would provide access to up to $800 million in additional capital through 2027 and beyond, to fund certification, flight testing, and early Valo production.

Vertical plans to use the capital to complete piloted transition flight, conduct public flight demonstrations, progress its hybrid-electric demonstrator, expand its energy center, advance construction of its manufacturing facility, and begin production of its first full-scale Valo certification aircraft.

“Today marks a new dawn for Vertical Aerospace,” said Vertical CEO Stuart Simpson. “We have assembled a comprehensive, flexible financing package designed to execute our strategic plan, and materially strengthened our ability to build and certify Valo.”

Shares rose over 4% in morning trading following the news.

The agreement, however, remains nonbinding. The company stated there is no assurance that definitive agreements will be reached or that transactions will be completed on the currently contemplated terms, but the parties have committed to execute definitive documents by April 19, 2026.