Vertical Aerospace has secured an agreement in principle for a financing package totalling up to $850 million, positioning the company to advance certification and production of its Valo aircraft.

The package supports a series of near-term milestones, including piloted transition flight, public demonstrations of its prototype, development of its hybrid-electric demonstrator, expansion of the Vertical Energy Center and progress on its manufacturing facility, alongside the start of production for its first full-scale certification aircraft.

In the near term, Vertical expects access to approximately $160 million in working capital, combining newly raised equity, available facilities, existing cash and anticipated tax relief and government support.

The financing structure spans multiple instruments, including a $50 million equity raise, potential issuance of up to $50 million in additional convertible secured notes, up to $250 million in convertible preferred equity and an equity line of credit of up to $500 million.

Mudrick Capital Management and Yorkville Advisors worked with Vertical Aerospace to structure the package, which is designed to provide phased access to capital aligned with technical and commercial milestones.

“This marks a new phase for Vertical Aerospace and strengthens our ability to build and certify Valo,” says Stuart Simpson, chief executive officer, Vertical Aerospace. “We have assembled a comprehensive, flexible financing package designed to execute our strategic plan and materially strengthened our ability to build and certify Valo. We are grateful to Mudrick Capital and Yorkville for their support of our technology, team and mission.”

Definitive agreements are targeted by April 19, 2026, with access to funding subject to documentation, due diligence and market conditions.