Lilium launches public offering to bridge liquidity gap

Lilium has announced plans to raise capital through a public offering of its Class A shares and warrants, alongside a private placement.

“We currently intend to use the net proceeds we receive from this offering to continue to fund the development and operations of the company and for general corporate purposes, which may include payments to the company’s suppliers, and working capital uses,” said the company in the offering prospectus.

The public offering will be led by B. Riley Securities and will include warrants to purchase additional shares.

Concurrent with the public offering, Lilium secured private investments from firms like BIT Capital, Earlybird Venture Capital, and an affiliate of Tencent. These investors agreed to purchase shares at $1.05 each, with warrants exercisable for $1.50 per share.

The funds raised from both offerings, along with a prepayment from Tencent affiliate Aceville, will be used to support Lilium’s ongoing development efforts and general operations.

Lilium’s cash spend during the first quarter of 2024 was $94.7m compared to quarterly average of $62.85m during FY23. With just $110m at the end of Q1 2024, the company aims to bridge the widening liquidity gap.

Lilium estimates they’ll need more funding to cover operations until their first manned test flight later this year. “We currently estimate that we will require substantial additional cash to fund our operations,” said the company in its offering prospectus.

The company anticipates receiving pre-delivery payments included in existing contracts to help offset the substantial costs of certifying their electric jet for commercial use.