Lilium Announces Successful Arrangement of $114 Million Capital Raise With Participation From Strategic and Existing Investors
Lilium (NASDAQ: LILM), a developer of all-electric vertical take-off and landing jets, has successfully raised $114 million in capital.
The funds will support the company's operations and its goal to achieve the first manned flight test of the Lilium Jet by late 2024.
The capital was raised through three transactions: a $40 million public offering of Class A ordinary shares and warrants, a $50 million private placement of shares and warrants with strategic and existing investors, and a $24 million private placement with Aceville Pte. , an affiliate of Tencent Holdings
Key investors include BIT Capital and Earlybird Venture Capital. The public offering was underwritten by B. Riley Securities, Inc.
- Successful capital raise of $114 million.
- Funds to support operations and target first manned flight test by late 2024.
- Participation from key strategic and existing investors.
- Involvement of notable investors like BIT Capital and Earlybird Venture Capital.
- Public offering underwritten by B. Riley Securities, Inc.
- Potential dilution of existing shareholders due to new share issuance.
- Dependence on successful completion of future capital tranches scheduled for May 31, 2024, and June 28, 2024.
- Financial obligations linked to the pre-funded warrants with Aceville Pte.
Insights
Lilium's announcement of a
The progress towards a manned flight test for the Lilium Jet is an essential step in validating the technology and feasibility of their eVTOL aircraft. This capital raise will likely accelerate development timelines and provide the necessary resources for rigorous testing. The involvement of well-known tech investors reinforces the potential of Lilium's technology to disrupt regional air mobility. Lilium's focus on an all-electric design not only aligns with global sustainability trends but also positions them as a pioneer in green aviation. That being said, it is important to keep in mind the challenges associated with bringing such cutting-edge technology to market. Regulatory hurdles, safety certifications and public acceptance are significant barriers that the company will need to navigate effectively.
Lilium's successful capital raise reflects positively on the company's ability to attract and retain investor interest. This funding is particularly timely, given Lilium's plans to initiate manned flight tests, an important milestone that could significantly impact market perceptions and future valuations. The strategic participation from prominent investors not only provides financial stability but also adds credibility to Lilium's market narrative. However, the market for eVTOL and regional air mobility is still nascent and companies in this sector face substantial uncertainty. Competitive pressures, evolving regulatory landscapes and the need for public infrastructure adaptations are key factors that could influence Lilium's market penetration and overall success.
MUNICH, Germany, May 29, 2024 (GLOBE NEWSWIRE) -- Lilium N.V. (NASDAQ: LILM) (“Lilium”), developer of the first all-electric vertical take-off and landing (eVTOL) jet and global pioneer in regional air mobility (RAM), announced today that it has successfully concluded its previously announced capital raise, resulting in
The
Klaus Roewe, CEO of Lilium, commented: “We appreciate the support from existing Lilium partners and new investors alike. We have a robust set of strategic and financial investors that are comprised of some of the brightest minds in the disruptive technology sector, and their consistent support, including participation in this capital raise, is a testament to the progress we are making in bringing the revolutionary Lilium Jet to market.”
B. Riley Securities, Inc. acted as the sole bookrunner and underwriter for the underwritten public offering. Lilium intends to further discuss its recent developments and progress with the release of its Q1 2024 quarterly shareholder letter on Tuesday, June 11, before market open, and will host of a conference call that same day at 8 a.m. Eastern Daylight Time (EDT). Additional information on these events will soon follow.
Contact Information for Media:
Rainer Ohler
+49 172 4890353
press@lilium.com
Contact Information for Investors:
Rama Bondada
Vice President, Investor Relations
investors@lilium.com
About Lilium
Lilium (NASDAQ: LILM) is creating a sustainable and accessible mode of high-speed, regional transportation for people and goods. Using the Lilium Jet, an all-electric vertical take-off and landing jet, designed to offer leading capacity, low noise, and high performance with zero operating emissions, Lilium is accelerating the decarbonization of air travel. Working with aerospace, technology, and infrastructure leaders, and with announced sales and indications of interest in Europe, the United States, China, Brazil, the UK, the United Arab Emirates, and the Kingdom of Saudi Arabia, Lilium’s 1000+ strong team includes approximately 500 aerospace engineers and a leadership team responsible for delivering some of the most successful aircraft in aviation history. Founded in 2015, Lilium’s headquarters and manufacturing facilities are in Munich, Germany, with teams based across Europe and the U.S. To learn more, visit www.lilium.com.
Important information
No announcements or information regarding the underwritten public offering may be disseminated to the public in jurisdictions where a prior registration or approval is required for such purpose. No steps have been taken, or will be taken, for the offering of the Class A Shares or the warrants in any jurisdiction where such steps would be required. The issue or sale of the Class A Shares and the warrants, and the subscription for or purchase of the Class A Shares and the warrants, are subject to special legal or statutory restrictions in certain jurisdictions. Lilium is not liable if these restrictions are not complied with by any other person.
This press release is not a prospectus for the purposes of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 (the “Prospectus Regulation”) and has not been approved by any regulatory authority in any jurisdiction. Lilium has not authorized any offer to the public of the Class A Shares or the warrants in any member state of the European Economic Area (“EEA”) and no prospectus has been or will be prepared in connection therewith. In any EEA member state, this communication is only addressed to and is only directed at qualified investors in that member state within the meaning of the Prospectus Regulation.
In the United Kingdom, this document and any other materials in relation to the Class A Shares and the warrants described herein is only being distributed to, and is only directed at, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, “qualified investors” who are (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). In the United Kingdom, any investment or investment activity to which this communication relates is available only to, and will be engaged in only with, relevant persons. Persons who are not relevant persons should not take any action on the basis of this document and should not act or rely on it.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the U.S. federal securities laws, including, but not limited to, the expected closing of the capital raise. These forward-looking statements generally are identified by the words “anticipate,” “believe,” “expect,” “estimate,” “future,” “intend,” “may,” “plan,” “project,” “should,” “strategy,” “will,” “would” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on management’s current expectations with respect to future events and are based on assumptions and are subject to risks and uncertainties that are subject to change at any time. Actual events or results may differ materially from those contained in the forward-looking statements. Factors that could cause actual future events to differ materially from the forward-looking statements in this press release include the risk that the offerings described herein are not consummated on a timely basis or at all as well as those risks and uncertainties discussed in Lilium’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including in the section titled “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2023, on file with the SEC, and similarly titled sections in Lilium’s other SEC filings, all of which are available at www.sec.gov. We caution investors not to rely on the forward-looking statements contained in this press release. You are encouraged to read our filings with the SEC available at www.sec.gov for a discussion of these and other risks or uncertainties. Forward-looking statements speak only as of the date they are made. You are cautioned not to put undue reliance on forward-looking statements, and Lilium assumes no obligation to, and does not intend to, update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Lilium’s business is subject to substantial risks and uncertainties including those described in Lilium’s filings with the SEC referenced above. Investors, potential investors and others should give careful consideration to these risks and uncertainties.
FAQ
What is the amount of capital Lilium raised in May 2024?
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