MUNICH - Lilium N.V. (NASDAQ: LILM), the developer of an all-electric vertical take-off and landing (eVTOL) jet, has completed a capital raise of $114 million to fund its operations and upcoming first manned flight test. The raise, which closed today, is a combination of a public offering and private placements.
The public offering portion of the capital raise consists of approximately $40 million in Class A ordinary shares and warrants, which concluded today. In addition, there are two concurrent private placements: one for about $50 million in Class A shares and warrants with participation from strategic investors such as BIT Capital and Earlybird Venture Capital, with closures expected on May 31 and June 28, 2024; and another placement to Aceville Pte. Limited, an affiliate of Tencent (HK:0700) Holdings (OTC:TCEHY) Limited, for approximately $24 million in pre-funded warrants and accompanying warrants, also expected to close on June 28, 2024.
Klaus Roewe, CEO of Lilium, expressed gratitude for the support from both existing partners and new investors. He highlighted the importance of the capital for progressing towards the market launch of the Lilium Jet, which promises zero operating emissions and aims to revolutionize regional air mobility.
B. Riley Securities, Inc. served as the sole bookrunner and underwriter for the public offering. Lilium plans to provide further updates on its progress with the release of its Q1 2024 shareholder letter on June 11, before the market opens, followed by a conference call later that morning.
InvestingPro Insights
As Lilium N.V. (NASDAQ: LILM) forges ahead with its ambitious eVTOL project, bolstered by a fresh $114 million in funding, investors and industry watchers are keenly observing the company's financial health and market performance. According to InvestingPro, Lilium holds a market capitalization of $566.65 million and is trading at a Price / Book ratio of 14.14 as of the last twelve months ending Q4 2023. This high Price / Book multiple may reflect investor optimism about the company's asset value and future growth, despite the absence of profitability in the last twelve months.
An InvestingPro Tip notes that Lilium is trading at a significant discount from its 52-week high, with the price currently at 48.42% of the peak. This could indicate a potential entry point for investors who believe in the company's long-term prospects, especially considering that two analysts have revised their earnings estimates upwards for the upcoming period. However, the stock has experienced considerable volatility, with a 1-week price total return of -17.32%, emphasizing the need for caution.
For those considering a deeper dive into Lilium's financials and future outlook, InvestingPro offers additional tips, including an analysis of the company's cash burn rate and short-term obligations. With a total of 13 InvestingPro Tips available, investors can gain a more nuanced understanding of Lilium's potential risks and opportunities. To access these insights and make more informed investment decisions, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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