Lilium (NASDAQ: LILM) stock surged during pre-market trading Tuesday after the company secured $114 million in combined public and private funding.
Lilium (LILM) has announced a substantial financial infusion totaling $114 million, comprising a combination of public and private investment. The capital raise encompasses a $40 million public offering and a $50 million private placement, with significant contributions from prominent investors such as BIT Capital, Earlybird Venture Capital, and Aceville Pte. Limited, an affiliate of Tencent Holdings (OTC: TCEHY).
The public offering involves the sale of 38,095,238 Class A ordinary shares at $1.05 per share, each accompanied by a warrant exercisable at $1.50 per share. B. Riley Securities serves as the sole bookrunner for the offering, expected to conclude on May 29, 2024. Additionally, Lilium has granted the underwriter a 30-day option to acquire up to 5,714,285 additional shares and warrants to cover over-allotments.
Simultaneously, Lilium has secured agreements for a private placement involving 47,573,111 shares and warrants, also exercisable at $1.50 per share. The execution of this private placement will occur in two tranches: the first tranche of approximately $26 million will close on May 31, 2024, and the second tranche of the remaining $24 million will close on June 28, 2024.
In addition, Aceville has committed to a pre-funded warrant for 24,233,035 shares and an additional warrant for the same number of shares, resulting in a prepaid amount of $24.23 million, marking a significant part of this investment. This strategic investment positions Aceville and its affiliates to own 19.8% of Lilium’s Class A shares for voting purposes, maintaining a proportional stake on a fully diluted basis, subject to potential adjustments.
The company has earmarked the newly raised funds for advancing its development and operations and general corporate purposes.
Lilium (NASDAQ: LILM) Stock Reaction
At 08:05 a.m. (Eastern Time) on Tuesday, LILM stock was priced at $0.93, reflecting an increase of 4.22% compared to the previous trading session.
