Shares of Lilium have taken a hit as the company unveils the pricing details for its upsized $192 million financing. The stock has retreated by 8.2% to $1.56 in premarket trading. While shares were enjoying a nearly 50% increase year-to-date as of the previous market close, they have declined by 31% compared to their value a year ago.
Underwritten Public Offering and Private Placement
Lilium plans to offer approximately 57.7 million shares for $1.30 each in an upsized underwritten public offering. In an added provision, underwriters have been granted the option to purchase up to an additional 8.6 million shares. Additionally, the company will engage in a private placement of over 32 million shares and warrants, priced at $1.30 per share and $2 per warrant, respectively.
Prominent Investors Participate
The private placement is being led by Earlybird Venture Capital and includes key investors such as BIT Capital, UVC Partners, Frank Thelen, as well as several members of Lilium’s board and senior executives.
Additional Funding from Aceville Pte. Limited
In a significant development, Aceville Pte. Limited, an affiliate of Tencent Holdings, has committed to providing an extra $75 million towards the total exercise price of the warrants issued. This commitment is contingent upon the underwritten public offering and private placement generating at least $75 million in proceeds.
