MELBOURNE, Fla. - Eve Air Mobility (NYSE: EVEX; EVEXW), an electric vertical take-off and landing (eVTOL) aircraft manufacturer, has secured $94 million in new equity financing.
The funding round saw the issuance of new common stock and warrants, with participation from industrial companies like Embraer, Nidec, and various financial investors. This capital injection is aimed at bolstering the company's position in the burgeoning eVTOL market and will support ongoing development and manufacturing efforts.
According to Eve's Chief Financial Officer Eduardo Couto, the investment reflects confidence in the company's future, complementing existing cash and credit resources. Eve boasts a substantial pre-order book, with intentions for 2,900 aircraft, indicating robust market interest.
The agreements, dated June 28, 2024, involve the sale of 23.5 million new shares at $4.00 each, the exchange of certain warrants for shares, and the granting of new warrants to some investors. The transaction is expected to close in the coming weeks, pending customary closing conditions, as detailed in a Form 8-K filed with the SEC.
Eve's eVTOL design features eight dedicated propellers for vertical lift and fixed wings for cruising, powered by dual electric motors. The design prioritizes safety, cost-effectiveness, and low noise. The company is in the final stages of assembling its first full-scale eVTOL prototype and is also developing Vector, an Urban Air Traffic Management software to enhance Advanced Air Mobility operations globally.
Bradesco BBI is serving as Eve's exclusive financial advisor, with Skadden, Arps, Slate, Meagher & Flom providing legal counsel. The securities sold have not been registered under the Securities Act of 1933 and are subject to SEC registration or exemption requirements.
Eve, which has been publicly traded on the New York Stock Exchange since May 10, 2022, is focused on advancing the Urban Air Mobility ecosystem, leveraging its aerospace expertise and comprehensive service network.
The information in this article is based on a press release statement.
In other recent news, Eve Air Mobility, a key player in the electric vertical takeoff and landing (eVTOL) aircraft market, has reported substantial progress in its Q1 2024 earnings call. The company has advanced in assembling its eVTOL prototype and secured non-binding letters of intent for 2,900 aircraft, valued at $14.5 billion.
In the financial aspect, Eve invested $27 million, leading to a net loss of $25 million, but ended with $223 million in cash, maintaining confidence in their liquidity and progress towards their milestones.
The company is on track with its 2024 milestones, including the assembly of the full-scale prototype and the expected publication of the basis of certification by the Brazil Certification Authority. Eve Air Mobility aims to fly prototypes in the latter half of next year, with service entry targeted for 2026. They are also preparing their manufacturing plant and seeking long-term financing for industrialization.
Despite a net loss of $25 million in the first quarter, Eve has secured contracts for maintenance, repair, and overhaul services, potentially generating up to $935 million in revenue over five to ten years. The company also plans to access an additional $60 million from its pre-approved credit line with the Brazilian Development Bank.
These are some of the recent developments in Eve Air Mobility's journey in the eVTOL aircraft market.
InvestingPro Insights
As Eve Air Mobility (NYSE: EVEX; EVEXW) navigates the competitive landscape of the eVTOL market, recent financial data from InvestingPro highlights key aspects of the company's fiscal health and market performance. With a current market capitalization of $1.09 billion, Eve Air Mobility is in a phase where financial metrics are particularly scrutinized by investors.
One of the InvestingPro Tips for EVEX points out that the company holds more cash than debt on its balance sheet, which could provide a cushion for its ambitious development and manufacturing plans. Additionally, the company's liquid assets exceed short-term obligations, indicating a solid position to manage its liquidity in the near term. However, analysts have raised concerns about the company's profitability, as they do not anticipate EVEX will be profitable this year, and the stock has experienced significant declines over the past months, trading near its 52-week low.
InvestingPro Data further reveals a Price / Book ratio of 7.74 as of the last twelve months leading up to Q1 2024. This suggests that the stock is trading at a high multiple of its book value, which could imply investor expectations of future growth or possibly an overvaluation. The company's operating income, adjusted for the same period, stands at a loss of $134.94 million, reflecting the challenges EVEX faces in achieving profitability amidst its growth efforts. Moreover, the 1-year price total return as of mid-2024 shows a steep decline of 61.35%, underscoring the market's reaction to the company's financial performance and outlook.
For readers interested in a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/EVEX. These tips provide further insights into EVEX's financial stability, market valuation, and future expectations. To access these insights and more, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. With a total of 12 additional tips listed on InvestingPro, investors can gain a comprehensive understanding of Eve Air Mobility's financial and market position.
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