Vertical Aerospace, the Bristol firm developing an innovative electric-powered ‘flying taxi’, has delayed its into service by two years as it agrees a multi million pound refinancing.
The move means the firm can continue the test programme for its revolutionary vertical take-off and landing (VTOL) VX4 aircraft, with a view to gain certification in 2028. 
It will then ramp up production to fulfil orders for around 1,500 of the zero-emission aircraft, pictured, with around 10% of these delivered by the end of 2029.
The firm, which employs around 350 people, is then targeting a production rate of 200 a year in the UK the following year.
St Philips-based Vertical was launched in 2016 by Stephen Fitzpatrick, the multi-millionaire founder and chief executive of Bristol-headquartered energy supplier OVO, with a mission is to make air travel personal, on demand and carbon free.
Its team, recruited from some of the world’s leading businesses such as Airbus, Rolls-Royce and Jaguar, has already certified and supported 30-plus aircraft and propulsion systems between them.
The VX4 has tilting propellers enabling it to take off and land like a helicopter but fly like a conventional plane.
It will have a range of more than 100 miles and capacity for four passengers and a pilot, travel as speeds of over 200mph and be near silent when in flight.
It will also have zero emissions and a low cost per passenger mile while also 100 times quieter and safer than a helicopter.
A prototype is already flying untethered at Vertical’s Cotswolds Airport test centre with its engineers studying its performance for stability, battery efficiency, controls and aerodynamics.
While the research and development has continued, the firm has been engaged in negotiations to get more funding into the business to secure the future of the programme as it moves from what it has called its “entrepreneurial phase” into a “more rigorous and structured execution phase”.
The finance deal involves a new provisional funding agreement with a $130m (£102m) debt-to-equity swap with primary creditor Mudrick Capital.
New York-based Mudrick will also provide up to $50m, half up-front with a potential $25m backstop, which would be reduced if Vertical obtains third-party financing through a planned equity placement.
The injection is part of a $180m transaction which includes conversion of around $130m of debt into equity.
If the transaction is completed, Mudrick will take over as Vertical’s largest shareholder with a 71% stake.
Mudrick Capital founder Jason Mudrick said his company’s commitment “underscores our appreciation” of Vertical’s position in the eVTOL sector.
He said Vertical had “demonstrated its ability to deliver ground-breaking solutions” for sustainable aviation.
“We’re supporting a company, its leadership team and partners, as Vertical brings the safest and most versatile aircraft to market,” he added.
Stephen Fitzpatrick, who has been the main shareholder, will remain on the board in a ‘strategic direction’ role.
He said: “We have been working hard to find a way to support the company in the short term, but also set us up for long-term success.
“The additional equity and stronger balance sheet will enable us to fund the next phase of our development programme and deliver on our mission to bring the amazing electric aircraft to the skies.”
Chief executive Stuart Simpson added that securing funding to address the company’s immediate needs allowed it to focus on advancing the VX4’s piloted flight-test programme.
In 2021 Vertical said it had received a $2bn order for up to 500 of the aircraft from Avolon, the international aircraft leasing company.
As part of the deal, Avolon said it would join Microsoft, Rolls-Royce, Honeywell and American Airlines as equity investors in Vertical, which, at that time, was working with Virgin Atlantic as a VX4 launch airline customer in Europe.
