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Three weeks after publicly revealing its play for control of Vertical Aerospace, Mudrick Capital Management has submitted a new financing proposal to the company’s board of directors that includes up to $50 million in guaranteed funding for the U.K.-based electric vertical take-off and landing developer — enough to carry the business through the end of next year.
Mudrick Capital’s founder and chief investment officer, Jason Mudrick, had previously offered to provide $25 million in new funding contingent upon Vertical raising another $50 million from outside investors. His latest proposal, outlined in a Nov. 13 letter to the board, includes an up-front commitment of $25 million, plus a backstop commitment to kick in an additional $25 million if the company is unable to raise that amount in its next funding round.
Related: Mudrick Capital makes play for control over eVTOL developer Vertical Aerospace
The funding would provide badly needed cash for Vertical as it embarks on the next stage of its piloted flight test campaign, but would severely dilute the positions of existing shareholders including founder Stephen Fitzpatrick, who has thus far resisted any moves that would reduce his control over the eVTOL developer.
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