Vertical Aerospace's $60 Million Share Offering Sends Shares Crashing

Vertical Aerospace Ltd. (NYSE:EVTL) on Tuesday announced a public offering to raise $60 million through the sale of ordinary shares, sending its stock lower as investors reacted to dilution concerns and financial uncertainty.

Proceeds from the raise will fund continued aircraft development, including testing, certification, and general corporate needs.

The offering comes after the company’s May reveal of a hybrid-electric variant of its VX4 aircraft, which integrates both electric and conventional propulsion systems for wider operational use.

Also Read: Vertical Aerospace Takes Off As Bristow Doubles Down On VX4 Aircraft

Underwriters were also given a 30-day option to purchase up to an additional $9 million in shares, subject to market conditions.

Vertical faces major regulatory hurdles, requiring coordination with the FAA, EASA, and CAA to certify the aircraft. Delays could push back commercial timelines and strain partnerships.

The company also plans to target defense, logistics, and air ambulance markets, applications demanding longer range and greater payload.

However, working with government contractors introduces added risk, including complex procurement rules, shifting budgets, and tight compliance requirements. Failures in these areas could jeopardize future deals and limit revenue growth.

As of June 30, 2025, Vertical reported preliminary cash and equivalents of £62 million, a figure still pending auditor review and subject to adjustment.

Investors tracking the broader innovation and aerospace sectors can consider ETFs such as ARK Autonomous Technology & Robotics ETF (BATS:ARKQ) and SPDR S&P Kensho Smart Mobility ETF (NYSE:HAIL).

EVTL shares have a 52-week range of $2.759 to $15.99. Year-to-date, EVTL is down roughly 45% and is currently trading about 12% below its 50-day simple moving average

Price Action: EVTL shares were trading lower by 25% to $5.20 premarket at last check Wednesday.

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