“…Vertical Aerospace will receive US$205 million in additional financing to support certification and commercialization of its VA-X4 eVTOL air taxi, the company announced this week.

The global investment firm Mudrick Capital Management is contributing $200 million of that total in the form of convertible senior secured notes. The remaining $5 million will come from the industrial investment company Kouros SA, which will contribute to Vertical’s private investment in public equity (PIPE) as the eVTOL developer seeks to go public through a combination with the special purpose acquisition company (SPAC) Broadstone Acquisition Corp. (NYSE: BSN).

The infusion comes at a critical time for Vertical Aerospace. The company, which announced its deal with Broadstone in June, was late to join the SPAC craze, missing out on the large PIPEs that buoyed some of its rivals.

Archer, Joby, and Lilium, which announced their own SPAC deals in February and March of this year, secured fully committed PIPEs of $600 million, $835 million, and $450 million, respectively.

Just a few months later, however, the PIPE market had tightened considerably. American Airlines, Avolon, Honeywell, Microsoft’s M12, Rolls-Royce, and 40 North all contributed to Vertical Aerospace’s PIPE, but with the additional investment from Kouros, it still totals just $94 million.

That leaves Vertical more dependent on Broadstone’s $305 million cash held in trust. Because SPAC shareholders can choose to redeem their shares at the time of the business combination, Vertical is not guaranteed to receive that total, and mass redemptions have become relatively common in the SPAC market.