![]() One maneuver would be a reverse stock split, which would prop up the price by reducing the circulating supply. Still, even without an emergency infusion of cash, there are ways to avert that scenario from occurring. The company acknowledges in a recent SEC filing that its sub-dollar share price could jeopardize its membership in the NASDAQ, which typically sends warning notices after 30 days of trading below that threshold, with a further 180 days of advance notice usually provided before delisting. But Lilium’s PDPs may be structured in a way that allows it to use them for general operational and certification costs.Īnother factor that adds urgency to Lilium’s financial dilemma is its steadily declining stock price, which first fell below $1 on March 1 and has traded as low as 65 cents in recent weeks. Typically, predelivery deposits (PDP) are placed into an escrow account that can be fully refunded to the customer if the aircraft fails to be built or delivered for whatever reason–a risk that is much higher for startups like Lilium that are essentially unproven and yet to certify a product. There are questions among industry watchers about how Lilium plans to use those funds, however. All told, the company has said it needs $540 million to see the program through to type certification, expected in 2025. Securities and Exchange Commission (SEC) indicated a need to raise $300 million to get to first manned flight of the Lilium Jet, at which point it would unlock up to $250 million in predelivery deposits that it plans to generate from sales of its private aviation-focused Lilium Jet Pioneer Edition. Roewe added that Lilium was in “advanced discussions” with its existing investors and shareholders toward securing more funding, which he said would finally “resolve this mess once and for all,” although he declined to offer more details. But he said he was “100% confident” that Lilium will find a way to close the funding gap, even if that means looking to potential strategic investors or even government funding as options to shore up the company’s balance sheet. Lilium CEO Klaus Roewe recently acknowledged in an interview with Aviation Week that it is “obvious” his company does not have enough cash to make it to type certification, expected for 2025. Debt servicing costs have risen tremendously in the last year, and stock valuations have been pummeled across the sector–Lilium’s shares have fallen by roughly 80% over the last 12 months–meaning any new share issues will generate less cash while further diluting the share price for existing investors. Raising capital will be no easy feat in the current financial markets, however. ![]() That means it urgently needs to raise money this year to fund operations into 2024. Lilium ended 2022 with around $273 million in cash after raising an additional $119 million from investors, but the company is forecast to spend between $250 million and $280 million in 2023, according to projections from SMG Consulting. The company’s stock price has plummeted in recent months amid swirling concerns about its high rate of cash burn and narrowing liquidity runway. One of those companies is Lilium, the German startup seeking to certify its ducted-fan, vectored-thrust Lilium Jet air taxi by 2025. Please note A4 Editions are only available for delivery within the UK.This year is shaping up to be a pivotal one for the burgeoning advanced air mobility (AAM) sector, and whether the companies in the race to certify their aircraft have the necessary capital remains an open question.įinancial conditions have tightened considerably over the last 12 months, and interest rates continue to rise around the world, helping to send AAM stocks to new depths each week, with some companies now officially in penny-stock territory. To order the play in this format, simply select the 'A4 Spiral-bound' option above. This play is also available as an A4 Edition, offering spiral binding, a larger print size and additional space for notes. Packing in more than fifty unforgettable characters, this imaginative version of Around the World in 80 Days was written for an ensemble cast of eight, but can be performed by a much larger cast – making it perfect for any theatre company or drama group looking for a high-spirited adventure. Laura Eason's celebrated adaptation of Jules Verne's classic novel was seen at the New Vic Theatre, Stoke, and Manchester's Royal Exchange before receiving its London premiere at the St. The fabulously wealthy Victorian gentleman Phileas Fogg wagers his life's fortune that he can circumnavigate the globe in just eighty days.Īlong with his hapless valet Passepartout, he sets out on a dazzling escapade that takes him from the misty alleys of London to the exotic subcontinent and on to the Wild West as they race against the clock on a dizzying succession of trains, steamers, a wind-propelled sledge and an elephant.
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