MUNICH - Lilium N.V. (NASDAQ: LILM), a company specializing in electric vertical take-off and landing (eVTOL) aircraft, has initiated an underwritten public offering of its Class A ordinary shares and warrants. Concurrently, the firm is conducting a private placement of shares and warrants, including to existing investors such as BIT Capital, Earlybird Venture Capital, and Aceville Pte. Ltd., an affiliate of Tencent Holdings (OTC:TCEHY).
The public offering includes an option for the underwriter, B. Riley Securities, to purchase additional shares and warrants to cover over-allotments within 30 days post-offering pricing. The terms of the offering, which is subject to market and regulatory conditions, have not been finalized.
In the private placement, certain investors and Lilium board members have agreed to purchase shares at $1.05 each, with accompanying warrants exercisable at $1.50 per share, pending shareholder approval for an increase in authorized share capital. These PIPE Warrants will be valid for six years from the date of issuance.
Lilium also plans to provide Aceville with a warrant to purchase shares, with a portion of the exercise price prepaid by Aceville. The proceeds from both the public offering and the private placement will be used to fund the development and operations of the company and for general corporate purposes.
The shares and warrants offered in the public offering are being made available under a shelf registration statement declared effective by the U.S. Securities and Exchange Commission (SEC) on October 12, 2022. A preliminary prospectus supplement will be filed with the SEC and made accessible on their website.
The securities sold in the private placement 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 without registration or an applicable exemption from registration requirements.
Founded in 2015, Lilium is working towards decarbonizing air travel with its all-electric jet, which is designed for high-speed, regional transportation. The company, with a team of over 1000 employees, including around 500 aerospace engineers, is headquartered in Munich, Germany.
InvestingPro Insights
Lilium N.V. (NASDAQ: LILM) is navigating a challenging financial landscape as it seeks additional funding through its latest public offering and private placement. With a market capitalization of approximately $558.17 million, the company's financial health and stock performance offer a mixed picture. According to InvestingPro data, the company's Price / Book ratio stands at a high 13.91 as of the last twelve months ending Q4 2023, indicating a premium valuation relative to its book value. This is an important metric for investors considering the current capital raise.
InvestingPro Tips reveal that while Lilium holds more cash than debt, providing some financial flexibility, analysts have concerns about the company's profitability. They do not expect Lilium to be profitable this year, and the company has been quickly burning through cash. Moreover, Lilium's stock price has experienced significant volatility, with a notable 10.32% decline in the past week, yet it has also seen a strong return over the last six months with a 35.46% increase.
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