Munich-based aviation startup Lilium, the developer of the first all-electric vertical take-off and landing (eVTOL) aircraft, announced on Tuesday, May 2, that it plans to raise up to $250M (nearly €226.60M), with $100M (nearly €90.6M) already funded at close.
According to an SEC filing, Aceville Pte. Limited, an affiliate of Tencent (its shareholder), has committed to pre-fund 184,210,526 warrants exercisable at $1 per share with $100M of cash to be funded at closing.
The remaining $75M will be paid if Lilium is able to secure $75M through equity, debt or grants from some third parties.
As of March 31, the company had nearly $157.5M of cash, cash equivalents and other financial assets. The company’s share price has been steadily plummeting (nearly 87 per cent YoY) and on 1 March 2023, it dipped below the $1 mark. However, the company’s shares have surged after yesterday’s announcement.
Lilium mentions that the funds will help cover “most of the estimated capital” required to achieve first manned flight.
Capital utilisation
Lilium says it will use the funds to develop its Lilium Jet and cover most of the estimated capital required to achieve the first manned flight of the type-conforming aircraft. This is planned to be achieved in the second half of 2024.
Additionally, the company also looks to benefit from the contribution of substantial pre-delivery payments (PDPs) which will help fund its subsequent capital requirements.
CEO of Lilium, Klaus Roewe, says, “The capital raise announced today marks an important development in our ongoing mission to revolutionise the aviation industry.”
He adds, “With this financing, we are excited to continue our development program at full pace. We remain in multiple constructive discussions with existing and potential new investors. We hope to announce further updates soon.”
About Lilium
Founded in 2015 by Daniel Wiegand, Sebastian Born, Matthias Meiner, and Patrick Nathen, Lilium is developing a regional high-speed, accessible, and sustainable method of transportation for people and goods.
The company is speeding the decarbonisation of air travel by using the Lilium Jet, an all-electric vertical takeoff and landing jet that offers leading capacity, low noise, high performance, and zero operational emissions.
Around 450 aerospace engineers makeup Lilium’s 800+ strong team, which also includes a leadership team in charge of producing successful aircraft in aviation history such as the Airbus A320, A350 and A380, Eurofighter Typhoon, Gulfstream G650, and Harrier VTOL.
They collaborate with leaders in the aerospace, technology, and infrastructure industries and have planned launch networks announced in Germany, the US, Brazil, and the UK.
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