(Bloomberg) -- Vertical Aerospace Ltd.’s founder and majority owner is seeking rule changes that would give him greater control over the board of the struggling air-taxi startup, raising tensions at the firm after he skipped a payment on a promised investment.
Stephen Fitzpatrick, who stepped down as chief executive officer last year, holds a majority stake in Vertical and has pledged to pump $50 million into the company. A second installment remains outstanding, the company said Tuesday, confirming an earlier Bloomberg News report that he missed a deadline to provide the funds.
On Aug. 30, Fitzpatrick made a shareholder request to call an extraordinary general meeting, the company said in a statement. He’s proposed amending the company’s bylaws to remove the requirement that directors whom Fitzpatrick is entitled to appoint be independent.
The meeting will be held on Sept. 30, Vertical said.
Vertical had $84 million in cash and cash equivalents at the end of June, an amount that’s now dwindled to about $63 million, the company said in a separate earnings release on Tuesday.
Cash outflows for the second half are estimated at as much as £45 million ($59 million), the company said.
The company reiterated that it needs more capital to fund its future operations and remain a going concern. It’s in discussions for a potential third-party investment, it said, adding that the second installment due from Fitzpatrick would extend its cash runway by one quarter, to the third quarter of 2025.
Vertical is working towards certification and entry into commercial service of its battery powered VX4 air taxi.
The company, which went public via a SPAC in 2021, announced a 1-for-10 reverse split on Monday after struggling to get its shares above the $1 threshold required by the New York Stock Exchange.
(Updates with cash on hand, details of payments from second paragraph)
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