Lilium has successfully arranged a capital raise for a total of $192 million.
Participants in the upsized round include leading German technology investors Earlybird Venture Capital, BIT Capital, UVC Partners and Frank Thelen; multiple institutional investors led by B Riley Securities; and e-mobility investor E-vestment BV. Several Lilium board members and senior executives also participated. Aceville, an affiliate of Tencent Holdings, will fund an additional $75 million to partially prepay against the total exercise price of the warrants previously issued, with such funding expected shortly.
This capital raise represents a significant step in securing full funding for the commercial launch of the Lilium Jet. Together with the $100 million funded in early May, this will bring the total raised this year to $292 million and will enable the development programme to continue at full pace. It covers much of the estimated capital required to achieve a first manned flight of the type-conforming aircraft, which is on track for the second half of 2024. Thereafter, Lilium expects to receive substantial pre-delivery payments (PDPs) that will fund a significant portion of its future capital requirements, including manufacturing of its type-conforming aircraft.
CEO Klaus Roewe says: “Our continued mission is to support the decarbonisation of the aviation industry with our revolutionary Lilium Jet. We're thrilled to have such strong support to continue that mission from existing and new investors, including in our own backyard here in Germany, with leading tech investors Earlybird and BIT Capital, as well as UVC Partners, closely associated with our founders' alma mater, the Technical University of Munich, and from repeat Lilium-investor Frank Thelen.”
Earlybird co-founder and partner Dr Hendrik Brandis says: “We are thrilled to back Lilium and demonstrate our continued support for aviation innovation. Coming from an aerospace engineering background, I am fascinated by brave innovators tackling new frontiers. We believe Lilium offers multiple advantages in terms of safety, flight comfort, low noise levels, total cost of ownership, as well as climate impact via its zero emissions. The commercial case is clear and stands to expand inter-urban transportation. We see Lilium's future as very positive and are excited to be a key part of it.”
Johannes von Borries, UVC Partners managing partner, adds: “We have followed and supported Lilium from the beginning. While it seemed like a fantastic dream to build electric jets back then, the company has grown into a world-class aircraft manufacturer. We are extremely proud to be part of the next phase of the journey to electrify air travel.”
The $192 million in gross proceeds is being raised through three transactions: an underwritten public offering of shares raising gross proceeds of approximately $75 million; a concurrent private placement raising gross proceeds of approximately $42 million led by Earlybird and including UVC Partners, BIT Capital, Frank Thelen and E-vestment BV, as well as multiple Lilium board members and senior executives; and Aceville funding $75 million to partially prepay against the total exercise price of the warrants issued to it in May 2023, with such funding expected shortly.
Lilium will release its Q2 2023 shareholder letter before market open on Tuesday, 25 July.