MUNICH - Lilium N.V. (NASDAQ: LILM), a company specializing in electric vertical take-off and landing (eVTOL) jets, has announced a significant financial boost through a mix of public and private investment totaling $114 million.
The capital raise includes a $40 million public offering and a $50 million private placement, with contributions from notable investors such as BIT Capital, Earlybird Venture Capital, and Tencent (HK:0700) Holdings (OTC:TCEHY) affiliate Aceville Pte. Limited.
The public offering, priced at $1.05 per share and accompanying warrant, involves the sale of 38,095,238 Class A ordinary shares and equal warrants, which are exercisable at $1.50 per share. B. Riley Securities is the sole bookrunner for the offering, which is expected to close on May 29, 2024. Moreover, the company has granted the underwriter a 30-day option to purchase up to 5,714,285 extra shares and warrants to cover over-allotments.
Concurrently, Lilium has entered into agreements for a private placement of 47,573,111 shares and warrants, with each warrant also exercisable at $1.50 per share. The private placement is set to close in two parts, with approximately $26 million concluding on May 31, 2024, and the remaining $24 million on June 28, 2024.
Of particular note is the investment by Aceville, which includes a pre-funded warrant for 24,233,035 shares, alongside an additional warrant for the same number of shares, amounting to an aggregate prepay price of $24.23 million. This strategic move ensures that Aceville and its affiliates will own 19.8% of Lilium's Class A shares for voting purposes and a pro rata amount on a fully diluted basis, subject to adjustments.
The funds raised are earmarked for the continued development and operations of Lilium, as well as for general corporate purposes. This investment round is pivotal for Lilium, which aims to revolutionize regional air mobility with its all-electric jet, promising zero operating emissions and a new era of sustainable high-speed transportation.
The securities sold in this financing have not been registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent registration or exemption from such requirements. This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
InvestingPro Insights
As Lilium N.V. (NASDAQ: LILM) secures a fresh round of funding to propel its eVTOL jet development, the financial landscape of the company presents a mixed picture. With a market capitalization of $558.17 million, Lilium's financial health and stock performance metrics offer insights into its market position and investor expectations.
InvestingPro data reveals that Lilium's Price / Book ratio stood at 13.93 as of the last twelve months ending Q4 2023, indicating a high valuation relative to the company's net asset value. This could be reflective of the market's optimism about the company's future growth prospects despite current financial figures. The company's operating income for the same period was reported at a negative $299.67 million, underscoring the challenges Lilium faces as it works towards commercial viability.
Recent stock performance shows a volatile pattern, with a 1-week price total return of -13.11%, yet a strong 1-month return of 17.69% and a 3-month return of 19.8%. This volatility is echoed in the InvestingPro Tips, which highlight the company's significant cash burn and the fact that short-term obligations exceed liquid assets. Moreover, analysts have revised their earnings upwards for the upcoming period, suggesting that there may be positive developments on the horizon for Lilium.
For investors and stakeholders considering Lilium's potential, the InvestingPro platform offers additional insights. There are 15 more InvestingPro Tips available for LILM, which could provide a deeper understanding of the company's financial health and future prospects. Interested readers can access these tips at InvestingPro and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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