An American hedge fund is making millions of dollars available on demand to air taxi developer Lilium. The Lilium boss had previously asked for German state aid.
The Lilium founders (from left to right): Patrick Nathen, Sebastian Born, Daniel Wiegand and Matthias Meiner. Lilium Aviation
Lilium boss Klaus Roewe recently sounded the alarm because the German air taxi developer’s funds could be running out. He advocated government guarantees to secure new investments. According to Welt research, Lilium has now agreed on an emergency financial injection. The US hedge fund Yorkville Advisors is ready to buy Lilium shares for up to 150 million dollars (around 139 million euros). An on-demand capital injection is planned because it is not yet clear whether and when the offer, which is limited until May 2027, will be used.
US investor buys shares below market value
A special general meeting on May 30 is expected to approve the potential entry of the US investor, according to documents submitted to the US Securities and Exchange Commission. SEPA financing (Standby Equity Purchase Agreement) is planned, in which an investor buys shares if necessary, in a sense an equity loan. Yorkville could acquire the shares at a few percentage points below the market price. Part of the Yorkville business model is to invest in ambitious and risky future areas. The hedge fund also invested in the temporarily insolvent German electric car developer Sono Motors.
Read too
The air taxi industry has to deliver this year – and is facing a problem
When asked, a Lilium spokesman downplayed the significance of the Yorkville agreement and spoke of it as a frequently used hedge for companies listed on the US technology exchange Nasdaq. The issue of security is not only a top priority for the Lilium models, but also for company finances, according to the reasoning. The Lilium financial aid from the USA is still significant. Because it is becoming public at a time when both the head of Lilium and the head of the air taxi company Volocopter, Dirk Hoke, are bluntly asking for state aid as a guarantee in order to further finance the development of their electric vertical take-off aircraft. Hoke even spoke of a potential risk of bankruptcy or sales abroad.
Lilium boss Roewe also recently complained in an interview with the “Süddeutsche Zeitung” about a lack of political support to keep the future industry in the country. Because of its E-Jet engines instead of propellers and its greater range, Lilium does not see itself as a classic air taxi, but rather as an offer for city connections with an initial range of 175 kilometers.
Read too
Lilium CEO in an interview: His schedule for the air taxi launch
The Lilium financial aid will be announced shortly before the business aircraft trade fair (EBACE) in Geneva at the end of May, where the final design of the model for four to six passengers plus pilot will be shown publicly for the first time. New orders are often agreed around trade fairs. To date, Lilium has received letters of intent for 757 models, including 42 firm orders. Commercial launch is planned for 2026 – if regulators give the green light. The first manned Lilium test flight is planned for the end of the year.
1.36 billion euros in start-up losses
After this milestone, Lilium expects some relief in its finances. So far, the start-up losses have already added up to 1.36 billion euros. At the beginning of this year, Lilium still had around $200 million (186 million euros) in cash. The $150 million (139 million euros) promised by the Yorkville hedge fund corresponds very roughly to half a year’s worth of expenses.
The aviation scene is also following with interest how the tug of war between Berlin and the Free State of Bavaria over a state Kfw loan of 100 million euros with a Bavarian guarantee to Volocopter continues. There is speculation that Bavaria could at least promote or secure Lilium.